Summary IMF says provinces don't try increasing their revenues because they get enough from federal govt
KARACHI: (Dunya News) – International Monetary Fund (IMF) has on Monday said that after the agreement of National Finance Commission (NFC), implementation of agriculture tax is a provincial subject. IMF went on to observe that the provinces don’t try increasing their revenues because they get enough from the federal government, reported Dunya News.
Suggesting ways to increase the provincial revenues, IMF suggested the government to make such amendments in the NFC that force the provinces to increase their resources through the implementation of agriculture tax.
In a special interview to Dunya News, Head of IMF’s Pakistan Mission Herald Finger said that provinces don’t implement the taxes on agriculture and property due to their over-dependence on Islamabad. He said that agriculture tax can help improve government’s income and also expanding the tax net. He said that it was provinces’ duty to implement agriculture taxes in view of the NFC agreement.
According to Herald Finger, NFC award needs to be reviewed. He suggested making amendments in NFC that would help both the provinces and the federation. He said that such amendments should be introduced that force the provinces to increase their tax revenues.
