Proposed bud­get de­fies spirit of fis­cal fed­er­al­ism: Sherry

Pakistan Observer - - ECONOMY WATCH -

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

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