Islamabad: The federal and provincial governments have reached a consensus mechanism of tax sharing and implementation on construction, restaurants, transportation and other businesses, news sources reported on Thursday (September 16). In this regard the National Taxation Council (NTC), an apex consultatory body met in Islamabad to share the mechanism of taxation and federal and provincial tax jurisdiction.
The NTC meeting was presided over by Federal Finance Minister Shaukat Tarin and attended by provincial finance ministers. The attendees extensively deliberated on the jurisdiction of taxation and came up with the following recommendations:
Tax on construction business will be implemented as per the constitution. However, further consultation between the federal and provincial governments will convene to decide the technical matters
Province will continue to tax restaurants and work on a reference sent to the law division for feedback
The federal government will collect sales tax on toll, while the province will have the taxation rights on the transportation sector.
In addition, the NTC agreed to create a single tax filing method in order to improve tax return filing and the ease of doing business in Pakistan. A technical consultation will be held between the federal and provincial governments in this respect.
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