[DAWN] Performance-based salaries of tax officials in Pakistain have significantly increased tax collection but the government move has also enhanced bribe rates, says a recent study by the International Monetary Fund (IMF).The study ‐ "Tackling Corruption in Government" ‐ analyses more than 180 countries and finds that more corrupt countries collect fewer taxes, as people pay bribes to avoid them, including through tax loopholes designed in exchange for kickbacks. The study also determined that when taxpayers believe their governments are corrupt, they are more likely to evade paying taxes.
The IMF also studied recent performance-related incentives that Pakistain offered to its tax officials, which had both desirable and undesirable consequences.