IMF officials told: Taxation issues can be resolved within existing constitutional framework

Provincial tax authorities have informed the International Monetary Fund (IMF) that the federation and provinces can resolve their taxation related issues within the existing constitutional framework.

Sources told Business Recorder here on Monday that the IMF delegation and high-ups of provincial revenue authorities/boards, provincial excise and taxation departments and provincial board of revenue held meeting here at the IMF office on Monday.

The IMF Technical Assistance mission comprising experts from Canada, Latin America and Spain met the provincial tax authorities.

The officials of Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA) made detailed presentations on the overall achievements of provinces in terms of revenue collection, services sector and other issues relating to the provinces. A senior official of the Khyber Pakhtunkhwa Revenue Authority was also present. The representative of Balochistan Revenue Authority did not participate in the meeting.

The SRB made an analytical presentation on the province's performance and policy measures taken during the last few years to increase provincial sales tax collection and expand the tax base of service providers within the province.

The provinces stated that the taxation-related issues between the federation and provincial revenue authorities/boards are being resolved while differences being removed.

During the presentation, the provinces highlighted provincial tax domain of the services sector, provincial autonomy and share of services sector into the Gross Domestic Product (GDP), and how the SRB/PRA have achieved their targets.

Under the provincial tax revenues, major contribution came from sales tax on services followed by stamp duties and motor vehicles tax.

The provincial authorities also said the coordination between the federal government and the provinces is also improving, sources added.

Copyright Business Recorder, 2019