Proposed budget defies spirit of fiscal federalism: Sherry
ISLAMABAD— Vice President PPPP Senator Sherry Rehman has questioned the skewed distribution of funds in the forthcoming budget, saying that the share of the province performing highest in terms of sales tax collection. During the first half of the outgoing fiscal year, the Sindh government had already collected Rs28.45 billion in sales tax, registering a growth of 33 percent compared with the corresponding period of the previous year. Why then is its development outlay so small?” questioned the Senator. The provincial government has also been making efforts towards improving compliance by simplifying procedures and enhancing the SRB’s responsiveness to taxpayers’ queries. Tax payment, return filing, and other compliance formalities are increasingly being automated, as a result of which there is minimal physical interaction between taxpayers and tax collectors.
“Sindh’s tax collection achievements are well documented. Last year too, it was the only province to have achieved its sales tax target. The allocations being made to the province in the forthcoming budget reflect the federal government’s deliberate negligence of the province’s revenue mobilization efforts as well as its development needs,” Rehman observed. The Senator also criticized the federal government’s decision to extend the ongoing National Finance Commission award.— PR