LAHORE: Federal Board of Revenue (FBR) Chairman Rashid Langrial said that while both the federal and provincial governments should contribute to tax collection, provinces must roll up their sleeves and do more.
Speaking at a three-day ThinkFest on ‘NFC, Governance, and Financial Crisis’ at Alhamra, Langrial said the state’s role is not just to collect taxes but also to ensure proper fiscal management.
He noted that property tax is under provincial jurisdiction and that provinces are not being pressured unnecessarily, receiving good revenues from their share.
Langrial added that provinces currently collect only around 2 percent of GDP in taxes, while the federal government collects 11 percent.
He pointed out that in agriculture, provinces collect 0.2 percent in tax, compared to India, which collects nearly double in the same sector.
He stressed that reducing wasteful federal spending and increasing provincial efforts are key to boosting overall tax revenue.
Former Finance Minister Miftah Ismail, speaking at the same event, noted that discussions have started on the 10th NFC award.
He highlighted that under the 7th NFC award of 2009, 57.16 percent of revenue goes to provinces, with Khyber Pakhtunkhwa getting slightly more due to security-related allocations.
