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The 7th NFC Agreement was a historic achievement that only a democracy could deliver. Its conclusion prior to the even more historic 18th Amendment to the Constitution of the Islamic Republic of Pakistan had particular meaning, as the fiscal autonomy that the NFC Award provided to the provinces underlined the political autonomy that the 18th Amendment provided.
For Sindh, the NFC Award had two achievements. One was the change from a single criterion to a multiple criteria horizontal distribution formula and the other was the transfer of collection of sales tax on services to Sindh. It is fitting that, while the nation celebrates today as Provincial Autonomy Day, Sindh also commences with the collection of Sales Tax on Services.

Copyright Business Recorder, 2011

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