ISLAMABAD/KARACHI: Federal transfers to the provinces will rise 37 per cent year-on-year to Rs7.438 trillion during 2024-25.

During the next fiscal year, Pun­jab’s share will be Rs3.69tr, followed by Sindh at Rs1.85tr and that of Balo­c­histan is projected to be Rs667.55 billion. Khyber Pakhtunkhwa’s recei­v­ables during the next fiscal year, including 1pc additional as compensation for war-on-terror, will be Rs1.22tr.

The distribution of revenues to the provinces is made under the heading of divisible pool taxes and straight transfers, which includes eight taxes levied and collected by the federal government.

These are taxes on income, wealth tax; capital value tax taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed; export duties on cotton customs duties federal excise duties excluding the excise duty on gas charged at well-head and any other tax which may be levied by the federal government.

Besides, 1 per cent of the net proceeds of divisible pool taxes are assigned to Khyber Pakhtunkhwa to meet the expenses of the war on terror.

The divisible pool transfers to the provinces include a projected transfer of Rs7.24tr, with the major chunk belonging to the income tax at Rs3.05tr, followed by sales tax at Rs2.78tr, customs duty, and the federal excise duty at Rs1.39tr.

The straight transfer amounts to Rs195.17bn and it includes Rs24.50bn for the Gas Development Surcharge. The royalty on natural gas is Rs101.67bn, excise duty on natural gas is Rs11.59bn, and Royalty on Crude Oil is Rs57.48bn.

The transfers are divided under the National Finance Com­mi­ssion award, and the recommendations of the NFC have legal cover.

Published in Dawn, June 13th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Misplaced priorities
Updated 19 Jul, 2024

Misplaced priorities

The government must call its APC at the earliest and invite all stakeholders to take part; this matter cannot be delayed further.
Oman terror attack
19 Jul, 2024

Oman terror attack

THE normally peaceful sultanate of Oman was shaken by sectarian terrorism on Monday when militants belonging to the...
Urban flooding
19 Jul, 2024

Urban flooding

THE provincial authorities have been taking precautionary measures, or so we have been told, to cope with emergency...
A way forward
Updated 17 Jul, 2024

A way forward

Before political leaders inflict more damage, they must give talks a chance.
Export delusions
Updated 18 Jul, 2024

Export delusions

Plummeting exports as a ratio of GDP is one of the major reasons driving the current economic slowdown and the balance-of-payments crisis.
Diversity in UK politics
17 Jul, 2024

Diversity in UK politics

THE recent UK elections have ushered in the most diverse parliament in the nation’s history. Under the leadership...