President Asif Ali Zardari constituted on Friday the 11th National Finance Commission (NFC) to announce a new award for the exchange of federal divisible resources between the center and the provinces.
A NOTIFICATION FROM THE FINANCE DIVISION SAID THE PRESIDENT CONSTITUTE THE COMMISSION WITH THE FOLLOWING COMPOSITION: FINANCE MINISTER MUHAMMAD AURANGZEB AS THE CHAIRMAN, THE FOUR PROVINCIAL FINANCE MINISTERS, FORMER BUREAUCRAT NASIR MAHMOOD KHOSA AS A MEMBER REPRESSING Member Representing the Sindh Government, Former Bureaucrat Dr Musharraf Rasool Cyan As a Member Representing The Khyber Pakhtunkhwa and Farmanullah government as a member that represents the Baluchistan government.
The Commission will make recommendations to the President about the distribution between the Federation and the provinces of the “” net assets of the taxes mentioned in clause (3) of article 160 of the Constitution, “he said.
Taxes are taxes on income, including corporations tax, but not including income taxes consisting of the paid remuneration of the Federal Consolidated Fund; Taxes on sales and purchases of imported goods, exported, produced, manufactured or consumed; Export duties on cotton, and other export tariffs that the president can specify; Special tax duties, as specified by the President and other taxes, as specified by the President.
It will also recommend the President about the subsidies for the federal government to the provincial governments and the exercise, by the federal government and the provincial governments, of the powers of loans conferred by the Constitution.
The agency will make recommendations to the President about issues related to the exchange of financial expenses incurred or to be incurred by the Federation with respect to the subjects and issues that fall within the domain of the provinces; issues related to the exchange of financial expenses incurred or to be incurred by the Federation or the provinces or both with respect to transprovincial matters; issues related to financial expenses for national projects that will share the Federation and the provinces; and any other issue related to finance referring to the commission by the President.
For several years, the political leaders associated with the Ministry of Finance, as well as political actors in different parties of the center, have talked about the review of income transfers to the provinces to improve the financial position of the federal government.
The tenth NFC expired on July 21. The seventh NFC award has been in force for almost 15 years, far beyond its five -year mandate. The president has extended the award every year due to a disagreement between the provinces and the center on the new formula.
The amendment 18 provided constitutional protection to the participation of federal units, stipulating that the participation of a subfederation in any future prize should not be less than their participation in the previous award.
