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Tensions between Federal and Sindh governments over tax collection

By: Abdul Razzaq Soomro

It is not surprising that differences between the federation and the provinces have arisen in the federal parliamentary governments. However, these differences should not be allowed to escalate, otherwise it will not take long for matters to become serious. The issue now is that the federal government supports the Karachi Metropolitan Corporation’s proposal through electricity bills, while Federal Minister for Planning, Development and Reforms Asad Omar says the federation will oppose it. According to Sindh Chief Minister Murad Ali Shah, KMC has been collecting a quarter of its tax targets for the last several years, i.e. only Rs 250 million, so it has planned to collect it along with electricity bills to improve tax collection. Federal Minister Asad Omar had said that we will not allow it. Administrator Karachi Murtaza Wahab also seems to be a bit skeptical on this issue. He says that all I can say to the critics of KMC is to let this institution stand on its own feet. The money collected through the Municipal Utility Bill will not go into anyone’s pocket. It will be spent on the construction and development of the city. In all these cases, there is nothing that cannot be resolved amicably. After the 18th amendment, tax collection has also been partially vested in the provinces and K Electric, a private company and Sindh province, has the right to object to the federation if the province makes a plan through these two. He will have to come up with a better plan and fulfill his responsibilities towards the province. If the issue is resolved by sitting together, arbitrarily interfering in each other’s affairs will not solve the issue but will further confuse it which will not be difficult to give a political color.

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