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An Interview with Chief Minister of Khyber Pakhtunkhwa Mahmood Khan

Budget 2021: need for federalised tax apparatus

Daily Times “ A comprehensive strategy has been formulated to shift the gear and move to higher economic growth. I do not believe in increase in taxes to increase revenue collection but those outside the tax net would be tapped. The chances for any harassment by FBR officials shall be eliminated for which change in audit procedures. 17 percent General Sales Tax rate is very high and a mechanism has been prepared for its reduction and the government was also working on a sales tax system for small businesses….” Finance Minister Shaukat Tarin in his first testimony before the Standing Committee of the National Assembly on May 3, 2021.

In need of revenue mobilisation strategy

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�

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