Centre’s revenue share down after NFC: Shaikh

Govt pins hopes on provinces taking lead in development projects.

KARACHI: Finance Minister Dr Abdul Hafeez Shaikh has pinned hopes on provinces taking lead in new development projects as he says that after the seventh National Finance Commission (NFC) award, the central government’s revenue share has dropped significantly without a corresponding reduction in debt servicing or other necessary expenditures on defence, security and ongoing projects.

Speaking to members of the Overseas Investors Chamber of Commerce and Industry (OICCI) Shaikh assured foreign investors that no new taxes would be imposed in the upcoming budget.

He pointed out that despite the global meltdown and challenging business environment, Pakistan’s 3.7% GDP growth during fiscal year 2011-12 was comparable to growth rates across the region, excluding those in China and India.

Furthermore, he said the Federal Board of Revenue (FBR) had been successful in generating 17% additional revenues in 2010-11 which were expected to scale up to 25% in the current fiscal year.

OICCI members raised issues concerning the taxation structure in light of the upcoming budget, including loss of revenue due to tax exemptions and evasion.

Other taxation proposals focused on broadening of tax net through linkages of FBR databases with banks and other business centres, doing away with minimum tax and fixed tax regimes for companies, among others.

Published in The Express Tribune, May 23^rd, 2012.