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ISLAMABAD: The federal government has transferred Rs2,435.349 billion to the provinces during the first six months of the current fiscal year under the National Finance Commission (NFC) Award from Rs4,469,241 billion tax collected by the Federal Board of Revenue (FBR).

The year-on-year analysis reveals, transfer to the provinces during the first six months of the ongoing fiscal year was 30 percent higher over Rs1,880 billion for the same period of last fiscal year.

Of the total FBR tax collection of Rs4,469 billion during the first six months of the ongoing fiscal year, Rs1,189.696 billion was transferred to the Punjab government during July-December 2023-24 as opposed to Rs936.162 billion for the same period a year before that is higher by 27 percent.

Provinces: H1FY24 sales tax collection on services increases by 23.44pc YoY

The federal government has transferred Rs602.409 billion to the Sindh government from the FBR total tax collection during July-December 2023-24 under NFC award, which is higher by 28 percent over Rs469.187 billion transferred to the provincial government during the same period of last fiscal year.

Rs405,059 billion has been transferred to the Khyber-Pakhtunkhwa government under the NFC Award during the first six months of the current fiscal year compared to Rs314.125 billion for the same period of last fiscal year, reflecting an increase of 29 percent.

Transfers from the federal government under the NFC Award to the government of Balochistan was Rs238.185 billion during July-December 2023-24 compared to Rs160,566 billion for the same period of last fiscal year, reflecting an increase of 48 percent.

Copyright Business Recorder, 2024

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