ISLAMABAD/KARACHI: In 2024–2025, federal transfers to the provinces will increase by 37% annually to a total of Rs7.438 trillion.
Punjab will have a portion of Rs3.69 trillion in the upcoming fiscal year, Sindh will have a share of Rs1.85 trillion, while Balochistan’s contribution is expected to be Rs667.55 billion. The receivables from Khyber Pakhtunkhwa for the upcoming fiscal year will be Rs1.22 trillion, with an additional 1% as payment for the war on terror.
Under the category of divisible pool taxes and straight transfers, which comprises eight federally imposed and collected taxes, the provinces receive their share of the money.
These include income taxes, wealth taxes, capital value taxes, export duties on cotton customs duties, and taxes on sales and purchases of items that are produced, manufactured, imported, and consumed. federal excise charges, which do not include any other taxes that the federal government may impose or the excise duty on gas that is charged at wellhead.
In addition, Khyber Pakhtunkhwa is given 1% of the net proceeds from divisible pool taxes to help with counterterrorism costs.
A estimated Rs7.24 trillion will be transferred from the divisible pool to the provinces, the majority of which will go toward income tax (Rs3.05 trillion), sales tax (Rs2.78 trillion), customs duty, and federal excise duty (Rs1.39 trillion).
The straight transfer is worth Rs195.17 billion, of which Rs24.50 billion is allocated for the Gas Development Surcharge. Natural gas has a royalty of Rs101.67 billion, natural gas excise charge of Rs11.59 billion, and crude oil has a royalty of Rs57.48 billion.
The National Finance Commission’s award governs the transfers, and the NFC’s recommendations are legally enforceable.
