A provincial subject

This refers to the news report ‘18th Amendment continues to damage revenue generation’ (Sep 24). The Pakistan Economy Watch (PEW) has said that the 18th Amendment has “added to confusion in the taxation system” as following the amendment the sales tax on services became a provincial subject. However, the PEW is perhaps not aware of the fact that it was the Constitution (Fifth Amendment) Act, 1976 that made the subject of sales tax on services a provincial subject.

The PEW should also know that the remarkable performance of the provinces with regard to the collection of sales tax on services has also been acknowledged and appreciated by the State Bank of Pakistan. There is no sufficient evidence available to support the PEW’s claim that provincial sales tax on services has caused any damage to or negatively impacted the overall revenue generation.

Ramin Shamim ( Karachi )