"Unveiling Corruption in Tax Administration: A Socio-Political Discourse Analysis of SARA Reforms in Pakistan

Abstract

Corruption and inefficiencies in tax administration remain significant barriers to governance and economic development in developing nations. In Pakistan, the Semi-Autonomous Revenue Authority (SARA) model was introduced to combat these issues by enhancing administrative autonomy, reducing corruption, and improving tax revenue collection. This study critically examines the socio-political and institutional dynamics that influence the effectiveness of SARA reforms in Pakistan, with a focus on discourse and public perception. Using a mixed-methods approach, the research integrates discourse analysis, interviews, focus group discussions, and statistical data to explore the interplay between reform implementation and governance challenges. Findings reveal that while SARA reforms have introduced structural changes, their impact on reducing corruption and increasing revenue collection has been limited due to persistent political interference, weak accountability mechanisms, and capacity constraints. Public mistrust in the Federal Board of Revenue (FBR) and inadequate public awareness campaigns further undermine the effectiveness of these reforms. Comparative insights from other developing countries highlight the importance of political will, robust accountability, and context-specific strategies in achieving reform success. The study underscores the need for a multidimensional approach to tax reform that addresses technical, socio-political, and communicative barriers. Recommendations include strengthening institutional autonomy, fostering public trust, enhancing accountability, and leveraging effective discourse strategies to promote compliance and governance.