• Farzana Altaf
  • Dr. Gobind Herani
  • Dr. Naveed Wahid Awan


Tax Evasion, Services Income, Technological Readiness, Ease of Doing Business, Accountability


Tax evasion is a much challenging issue in both developed and developing countries specifically in South Asia. This study examines the tax evasion problem which erodes revenue generation for the Tax authorities and Governments in South Asian context. The objective of this study is to explore major determinants which influence tax evasion in this region. This research provides a basic framework to understand the impact of socio-economic, behavioral, institutional and political factors towards the decision of evading taxes. The research has conducted an empirical investigation of four South Asian countries, Pakistan, Bangladesh, India, and Sri Lanka through OLS panel regression analysis and Fixed Effect (FE) approach using a dataset from 1988 to 2017 derived from World Economic Forum Annual Reports for the period 1988- 2017. The measures that may help tax agencies and the governments to discourage tax evasion have also been highlighted in the last part of this paper. it is observed that factors like age, corruption, high-income level, marginal tax rate, ease of doing business, and accountability are positively related to the tax evasion with varying magnitude whereas the variables for gender, services income, HDI, public trust in politician and rule of law are negatively associated with the dependent variable. self-assessment, agriculture income source and technological readiness show mixed results both insignificant and significant for the region. it is concluded that economic and institutional factors are more strong determinants of tax evasion in comparison with the demographic factors.

Author Biographies

Farzana Altaf

Farzana Altaf is serving as Additional Commissioner IRS, in the Federal Board of Revenue, Pakistan and pursuing her PhD at Greenwich University Karachi. Her email ID is

Dr. Gobind Herani

Professor Dr. Gobind herani is Dean, Business Administration Department, at the Dadabhouy Institute of Higher Education. He can be contacted via email at

Dr. Naveed Wahid Awan

Dr. Naveed Wahid awan is currently working as Assistant Professor at the Shaheed Benazir Bhutto University, Nawabshah. He can be reached at


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