Bilawal Bhutto Zardari Calls for Decentralized Tax Collection

PPP Chairman Bilawal Bhutto Zardari on Tuesday stated that the country’s economy cannot be managed thru coercion and proposed that the federal government empower provinces to collect taxes to strengthen the economy.

Speaking to journalists after a meeting with the business community at the Federation of Pakistan Chamber of Commerce and Industry (FPCCI),Bilawal suggested provinces could directly collect sales tax,citing autonomous reports of a Rs3 trillion leakage.

“Wherever you need our assistance at the level of the president of Pakistan, our governors, we are ready to support your district-wise economic uplift plans,” the PPP chief said.

“The prime minister also desires to work towards this goal, but the difference between their approach and ours is that they believe in centralization, while we focus on decentralization,” he added.

Bilawal acknowledged the business community’s concerns regarding high tax rates, but affirmed that his party believes in increasing tax collection to bolster the economy.

“Though the goal is the same, the issue is that the current and previous governments have attempted to run the economy through force. We believe the economy cannot be run by force, but through a more accommodating approach,” he added.

“you attract more bees with honey than vinegar. Thus,if we make our tax rates competitive and show respect to taxpayers,rather of alienating them or forcing them into the tax net,we can achieve better results,” Bilawal argued.

He recalled that a significant exmaple of tax collection occurred before the 18th Amendment, when the federal government collected taxes on services through the Federal Board of Revenue, detailing how taxes were collected at that time.

“After the 18th Amendment, this responsibility was transferred to the provinces, and Sindh took a leading role, surpassing all previous collection records of the FBR,” Bilawal stated. “Punjab and Balochistan also broke records, but Sindh remained the leader. This was a result of decentralization.”

He proposed that the government delegate tax-collecting responsibilities to the provinces. If the provinces exceeded the targets set by the federal government,they would return the surplus to the Centre.

“I believe this would significantly help the federal government resolve its financial issues,” the PPP chairman maintained.

Bilawal appreciated the proposals presented by the FPCCI, describing them as highly valuable, and assured that the PPP would extend its full cooperation through its policy advisors.