Through my letter to this newspaper I wish to draw attention of Senator Raza Rabbani, the chairman of a parliamentary committee that gave birth to the 18th Constitutional Amendment, to what the two seasoned tax experts have suggested for achieving fiscal stabilisation in the country after the passage of this historic amendment to the Constitution of Islamic Republic of Pakistan. According to Huzaima Bukhari and Dr Ikramul Haq, "It is imperative that right to levy tax on income, including agricultural income, should be given to the Centre. In return, the Centre should hand over sales tax on goods to the provinces. This will help FBR collect income tax as per actual potential and the provinces by levying sales tax on goods in addition to services will generate sufficient funds for their needs. It will also reduce fiscal deficit of the Centre. This is the only way to achieve fiscal stabilisation in Pakistan without disturbing the 18th Amendment."
What is Senator Raza Rabbani's perspective opinion, or idea about their argument?

Copyright Business Recorder, 2019

Comments

Comments are closed.