ISLAMABAD: Finance Minister Ishaq Dar reduced provinces share of taxes by Rs75 billion under NFC Award by showing less recovery of taxes by fudging with figures for financial years 2013-14 and 2014-15.
Documents reveal that during the half yearly review meeting of 7th National Finance Commission (NFC) Award , the finance ministry presented report to provincial finance ministers on December 22, 2014 that FBR collected tax amounting to Rs2245.90 billion and provincial shares out of it stood at Rs1231.72 billion. While according to a State Bank report, the tax recovery was made to the tune of Rs2254.23 billion during the fiscal year 2013-14. This way, the finance minister deprived provinces of their due share by showing less recovery of taxes.
Likewise, during 2nd half yearly NFC Award review meeting for the financial year 2014-15 held on December 31, 2015, the finance ministry filed report of tax collection amounting to Rs2523.56 billion and only Rs 1390.31 billion were disbursed among the provinces. While a report released by the State Bank of Pakistan showed that the FBR collected Rs2589.97 billion during the financial year 2014-15. This way, the finance ministry deprived the provinces of their due share by showing less recovery of taxes to the tune of Rs66.41 billion.