Daily Times
May 2, 2021
The provinces must participate in devising a national tax policy and collection apparatus as their share under 7th National Finance (NFC) Award (57.5 percent) is greater than the federal government and it cannot be reduced under Article 160(3A) of the Constitution of the Islamic Republic of Pakistan [“the Constitution”]. Article 156(2) of the Constitution after Constitution (Eighteenth Amendment) Act, 2010, [commonly called “18th Amendment”] requires federalised and not centralised economic planning. It reads: The National Economic Council shall review the overall economic condition of the country and shall, for advising the Federal Government and the Provincial Governments, formulate plans in respect of financial, commercial, social and economic policies; and in formulating such plans, it shall, amongst other factors, ensure balanced development and regional equity and shall also be guided by the Principles of Policy set-out in Chapter 2 of Part II”.