Income Tax biggest revenue source for Balochistan

The Baloch Hal News

QUETTA: Contrary to the general misconception among the politicians and political activists, Income Tax is the biggest source of revenue, not the natural gas for the Balochistan government.

The share of Income Tax for Balochistan has been calculated for the next fiscal year over Rs 33.81 followed by Sales Tax calculated at Rs 31.50 billions.

Balochistan will receive Rs 9.53 billions from Customs and Rs 7.89 billions from Federal Excise.

In all the share of Balochistan government from the Divisible Pool of resources is estimated at Rs 83 billions. Rs 16.39 billions as straight transfers from the federal government to the provincial government.

The total revenue from natural gas is estimated around Rs 11.832 billion. There is a substantial increase in the gas revenue for Balochistan as the government had revised the wellhead price of natural gas and brought at par with the other provinces.

The share of Gas Development Surcharge is Rs 6.15 billion and royalty is Rs 4.17 billions and collection from Federal Excise and the provincial shares are estimated 1.503 billion.

The provincial receipts from General Sales Tax or GST are estimated at Rs 4.55 billions.

According to rough estimates, Balochistan government is expected to receive revenue of around Rs 116 billions in which share of natural gas in the total revenue will be less than 10 per cent, independent economists pointed.

The current political situation in Balochistan proved to be a big blessing that had forced the federal decision-makers to concede to the demands of Balochistan in a convincing manner in order to address the sense of deprivation among the Baloch people.

The government had revised the wellhead price of natural gas after six decades. It also accepted the demand to give due weightage to inverse population growth and backwardness besides allocating a substantial amount as subvention for Balochistan and NWFP.