Exciting news for the provinces as federal transfers are set to increase by 37% to Rs7.438 trillion in 2024-25. Punjab leads with a share of Rs3.69 trillion, followed by Sindh at Rs1.85 trillion, Balochistan at Rs667.55 billion, and Khyber Pakhtunkhwa at Rs1.22 trillion.
The distribution of revenues includes taxes from the divisible pool and straight transfers, comprising eight federal taxes. These transfers also allocate 1% towards Khyber Pakhtunkhwa’s expenses for the war on terror.
Major chunk of the transfers include income tax at Rs3.05 trillion, sales tax at Rs2.78 trillion, customs duty, and federal excise duty at Rs1.39 trillion. Additionally, straight transfers of Rs195.17 billion include components like Gas Development Surcharge and royalties on natural gas and crude oil.
The transfers are in line with the National Finance Commission award, providing legal cover for the recommendations. This boost in federal transfers is a significant step towards economic development and growth for the provinces.
Published in Dawn, June 13th, 2024
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