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Back Ground: 1935 to 1947 a. Government of India Act 1935 b. Sindh declared province on 1st April 1936 c. Financial Relations Between the Federation and Provinces
c. d. e.
WEST PAKISTAN PROVINCE ABOLISHED IN 1970 a. Sindh declared separate province. b. However, it remains in administrative and financial bondage. c. In 1970 for the first time all taxes except Sales Tax among West Pakistan provinces distributed on population basis. d. Punjab main beneficiary of this scheme.
a. NATIONAL FINANCE COMMISSION (NFC) provision in 1956 and 1962 and 1973 constitutions is same but NFC oversteps its constitutional mandate. b. Sales Tax Federalized. c. No major tax given to the provinces.
a. NFC has only to develop just and equitable formula. b. First NFC recommendations in 1974 break the back of Sindh. c. NFC is not mandated to carry out any economic exercise. d. It never carried such exercise under same arrangement in 1965 or 1962 constitutions. e. It has changed the meaning of this article.
PRESENT ARAANGEMENT OF DISTRIBUTION a. At present centre takes away 53% on the basis of revenue at source. b. 47% taxes not returned back to provinces as per recovery. c. They are again distributed on population basis. d. Distribution among the provinces not envisaged in the constitution.
REASONS FOR THIS JUST DISTRIBUTION FORMULA. a. Centre has no developmental responsibility except communication. b. It keeps around 600 billion non-tax revenue. c. Each province has representation in the centre according to population. d. Every province should contribute as per population. e. Punjab should contribute at least 55% from its accounts though its share in Federal services is more than 75%. f. Single account of the taxes amounts to one unit.
a. Separate tax account of each province. b. Centre must deduct its share as per population c. Return the rest of money to the provinces. d. No horizontal distribution ( distribution among the provinces)
a. No conflict in our stand, Sindh Assemblys resolution and article 160 of the constitution. b. Article 160 mentions only distribution between the Federation and each province. c. No distribution among the provinces allowed.
Sales tax to be progressively transferred to provinces. NFC award to be given in a just manner. Sindh government puts no such demand in NFC. Surrenders Sindhs financial sovereignty to Punjab.
FEDERAL GOVERNMENTS TAX REVENUE This year federal government will retain 750 billion. This whole amount belongs to Sindh. Sindh will get 130 -150 billion out of its 1000 billion. This means whole Federal government is being run on Sindhs money.
HOW MUCH SINDH WILL GET IN GST? Sindh already getting 8 billion as per past distribution. out of total 25 billion, addition will be 17 billion. It has not decided to collect this tax.
PUNJAB AND FEDERAL GOVERNMENTS PLANNING a. b. c. d. e. Bring as much non issues in NFC as possible Isolate Sindh. Take along NWFP and Balochistan. Insist on consensus. Use NFC as an economic forum instead of evolving just distribution formula f. Sindh Government acts like a brainwashed bird g. Goes in the trap with hands off.
INDIAN EXPERIENCE
a. Sales tax given to the provinces. b. Terminal taxes on goods, stamp duty, succession duty recovered by centre given to the provinces back. c. Income tax, customs duty and excise duties distributed among provinces by an Independent NFC without government interference. d. Population assigned least percentage.
CONCLUSION
Sindh being cheated and defrauded by NFC due to Sindh Governments abject surrender of Sindhs principled stand enshrined in the historic resolution of Sindh Assembly in 2003 and principles of Federalism.
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