LAHORE: PPP Chairman Bilawal Bhutto-Zardari on Tuesday demanded that the federal government hand over responsibility for collecting sales tax on goods to the provinces, arguing that provincial performance has been stronger compared to the Centre.
“After the 18th Amendment, provinces collected sales tax on services, which improved revenue, and Sindh’s performance has been far better than other provinces,” Bilawal said while addressing a ceremony at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in Lahore.
He claimed there was a Rs3 trillion leakage in sales tax on goods currently collected by the Centre, adding: “If provinces fail to meet targets, deduct our share, but if we exceed targets, then provinces must receive the additional amount.” He stressed that resolving the federal government’s economic difficulties was “the responsibility of all of us”.
He stressed that resolving the federal government’s economic difficulties was “the responsibility of all of us”.
Bilawal criticised previous governments for trying to run the economy “with a stick,” saying he believed economies function better “with affection”. He said tax collection must rise, emphasising transparency and the importance of digitisation in the FBR and that the revenue collection authority must be transformed into an entity which is trusted by the business community.
The PPP chairman highlighted Pakistan’s growing exports, noting the impact of GSP+ preferences, which increased exports to Europe by 80%. “Traders should work to boost exports further,” he said remarked.
The PPP chief further noted that Prime Minister Shehbaz Sharif wished to resolve the business community’s issues.
“The PM believes in centralisation, whereas we [PPP] believe in decentralisation.”
Bilawal also reiterated that Pakistan needs a green solution for subsidised electricity units and that load-shedding must be addressed.
He assured traders that the PPP “will continue playing its role” in resolving their issues.
