74 Federal Government's consent required for financial measures.
A Money Bill or a Bill or amendment which if enacted and brought into operation would involve expenditure from the Federal Consolidated Fund or withdrawal from the Public Account of the Federation or affect the coinage or currency of Pakistan or the constitution or functions of the State Bank of Pakistan shall not be introduced or moved in 166[Majlis-e-Shoora (Parliament)] 166 except by or with the consent of the Federal Government.

77 Tax to be levied by law only.
No tax shall be levied for the purposes of the Federation except by or under the authority of Act of 175[Majlis-e-Shoora (Parliament)] 175

78 Federal Consolidated Fund and Public Account.
(1) All revenues received by the Federal Government, all loans raised by that Government and all moneys received by it in repayment of any loan, shall form part of a consolidated fund, to be known as the Federal Consolidated Fund.

(2) All other moneys-
(a) received by or on behalf of the Federal Government; or
(b) received by or deposited with the Supreme Court or any other court established under the authority of the Federation;
shall be credited to the Public Account of the Federation.



79 Custody, etc., of Federal Consolidated Fund and Public Account.
The custody of the Federal Consolidated Fund, the payment Or moneys into that Fund, the withdrawal of moneys therefrom, the custody of other moneys received by or on behalf of the Federal Government, their payment into, and withdrawal from, the Public Account of the Federation, and all matters connected with or ancillary to the matters aforesaid shall be regulated by Act of 176[Majlis-e-Shoora (Parliament)] 176 or, until provision in that behalf is so made, by rules made by the President.

80 Annual Budget Statement.
(1) The Federal Government shall, in respect of every financial year, cause to be laid before the National Assembly a statement of the estimated receipts and expenditure of the Federal Government for that year, in this Part referred to as the Annual Budget Statement.

(2) The Annual Budget Statement shall show separately-
(a) the sums required to meet expenditure described by the Constitution as expenditure charged upon the Federal Consolidated Fund; and
(b) the sums required to meet other expenditure proposed to be made from the Federal Consolidated Fund; and shall distinguish expenditure on revenue account from other expenditure.




81 Expenditure charged upon Federal Consolidated Fund.
The following expenditure shall be expenditure charged upon the Federal Consolidated Fund:-
(a) the remuneration payable to the President and other expenditure relating to his office, and the remuneration payable to-
(i) the Judges of the Supreme Court 177[and the Islamabad High Court] 177;

(ii) the Chief Election Commissioner;
(iii) the Chairman and the Deputy Chairman;
(iv) the Speaker and the Deputy Speaker of the National Assembly;
(v) the Auditor-General;

178[
(b) the administrative expenses, including the remuneration payable to officers and servants, of the Supreme Court, the Islamabad High Court, the department of the Auditor-General, the Office of the Chief Election Commissioner and of the Election Commission and the Secretariats of the Senate and the National Assembly;
] 178
(c) all debt charges for which the Federal Government is liable, including interest, sinking fund charges, the repayment or amortisation of capital, and other expenditure in connection with the raising of loans, and the service and redemption of debt on the security of the Federal Consolidated Fund;
(d) any sums required to satisfy any judgment, decree or award against Pakistan by any court or tribunal; and
(e) any other sums declared by the Constitution or by Act of 179[Majlis-e-Shoora (Parliament)] 179 to be so charged.



82 Procedure relating to Annual Budget Statement.
(1) So much of the Annual Budget Statement as relates to expenditure charged upon the Federal Consolidated Fund may be discussed in, but shall not be submitted to the vote of, the National Assembly.

(2) So much of the Annual Budget Statement as relates to other expenditure shall be submitted to the National Assembly in the form of demands for grants, and the Assembly shall have power to assent to, or to refuse to assent to, any demand, or to assent to any demand subject to a reduction of the amount specified therein;
Provided that, for a period of ten years from the commencing day or the holding of the second general election to the National Assembly, whichever occurs later, a demand shall be deemed to have been assented to without any reduction of the amount specified therein, unless, by the votes of a majority of the total membership of the Assembly, it is refused or assented to subject to a reduction of the amount specified therein.

(3) No demand for a grant shall be made except on the recommendation of the Federal Government.

160 National Finance Commission.
(1) Within six months of the commencing day and thereafter at intervals not exceeding five years, the President shall 356 constitute a National Finance Commission consisting of the Minister of Finance of the Federal Government, the Ministers of Finance of the Provincial Governments, and such other persons as may be appointed by the President after consultation with the Governors of the Provinces.

(2) It shall be the duty of the National Finance Commission to make recommendations to the President as to-
(a) the distribution between the Federation and the Provinces of the net proceeds of the taxes mentioned in clause (3);
(b) the making of grants-in-aid by the Federal Government to the Provincial Governments;
(c) the exercise by the Federal Government and the Provincial Governments of the borrowing powers conferred by the Constitution; and
(d) any other matter relating to finance referred to the Commission by the President.


(3) The taxes refer red to in paragraph (a) of clause (2) are the following taxes raised under the authority of 357[Majlis-e-Shoora (Parliament)] 357, namely: -
(i) taxes on income, including corporation tax, but not including taxes on income consisting of remuneration paid out of the Federal Consolidated Fund;
358[
(ii) taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed;
] 358
(iii) export duties on cotton, and such other export duties as may be specified by the President;
(iv) such duties of exercise as may be specified by the President; and
(v) such other taxes as may be specified by the President.


359[
(3A) The share of the Provinces in each Award of National Finance Commission shall not be less than the share given to the Provinces in the previous Award.

(3B) The Federal Finance Minister and Provincial Finance Ministers shall monitor the implementation of the Award biannually and lay their reports before both Houses of Majlis-e-Shoora (Parliament) and Provincial Assemblies.

] 359
(4) As soon as may be after receiving the recommendation, of the National Finance Commission, the President shall, by 360 Order, specify, in accordance with the recommendations of the Commission under paragraph (a) of clause (2), the share of the net proceeds of the taxes mentioned in clause (3) which is to be allocated to each Province, and that share shall be paid to the Government of the Province concerned, and, notwithstanding the provision of Article 78 shall not form part of the Federal Consolidated Fund.

(5) The recommendations of the National Finance Commission, together with an explanatory memorandum as to the action taken thereon, shall be laid before both Houses and the Provincial Assemblies.

(6) At any time before an Order under clause (4) is made, the President may, by Order, make such amendments or modifications in the law relating to the distribution of revenues between the Federal Government and the Provincial Governments as he may deem necessary or expedient.

(7) The President may, by Order, make grants-in-aid of the revenues of the Provinces in need of assistance and such grants shall be charged upon the Federal Consolidated Fund.


165 Exemption of certain public property from taxation.
(1) The Federal Government shall not, in respect of its property or income, be liable to taxation under any Act of Provincial Assembly and, subject to clause (2), a Provincial Government shall not, in respect of its property or income, be liable to taxation under Act of 364[Majlis-e-Shoora (Parliament)] 364 or under Act of the Provincial Assembly of any other Province.

(2) If a trade or business of any kind is carried on by or on behalf of the Government of a Province outside that Province, that Government may, in respect of any property used in connection with that trade or business or any income arising from that trade or business, be taxed under Act of 365[Majlis-e-Shoora (Parliament)] 365 or under Act of the Provincial Assembly of the Province in which that trade or business is carried on.

(3) Nothing in this Article shall prevent the imposition of fees for services rendered.

EVERY year, in the month of May, a familiar ritual begins to play itself out. With the approach of the end of the fiscal year, the tax authorities begin to ramp up their efforts to extract as much revenue from as many parties as they possibly can. They use tactics such as holding up refunds, blocking company accounts against frivolous tax notices that everyone knows will be eventually overturned, and serving up equally petty orders in pending disputes that will inevitably be shot down in appeal. But for the moment, till the announcement of the budget speech and the compilation of the fiscal numbers, every effort will be made in May to show as much performance as possible, with the knowledge that later these orders and encumbrances placed on accounts will have to be reversed. But ‘later’ is another matter.

This time around, a new ingredient appears to be asserting itself. The provincial revenue authorities, also under pressure to increase revenues, appear to be jumping in as well. In Sindh, but particularly in Punjab, where the majority of big companies are headquartered, outlandishly large tax bills are beginning to arrive in the offices of big corporate enterprises. One is left wondering whether the timing is coincidental as it is right at the end of the fiscal year when the revenue performance of each of the authorities is going to be tallied up. This rhythm has become so familiar to many enterprises that they begin preparing for it months in advance. Sometimes the resultant battle turns nasty, with offices being sealed and accounts being frozen, but most of the time it is negotiated between the parties and a settlement amount agreed upon. Much of the country’s tax effort is, in fact, negotiated, showing the fundamental weakness of the tax authorities to conduct proper assessments. This is a sad ritual, and the fact that the notices are served ferociously but later quietly overturned shows that many of them are meant only as a secondary revenue exercise, albeit creating a temporary inflow for the state. On top of the more routine delays in refunds, which severely hamper the liquidity position of firms, this annual exercise speaks to the broad dysfunctions that plague our tax machinery. Inability to assess incomes and the misuse of coercive powers given to the tax bureaucracy create the stage for this theatre of the absurd.

__________________
“What we need in this country today is more courage and more belief in the things that we have.”- Thomas J. Watson

@ All
Thanks a lot for appreciation. I believe in sharing is caring.


Furthermore, I want you all to read Business Recorder newspaper, it is far better than the Dawn. Budget making articles are written in it, apart from Economy articles are also present. You may read online in e-paper. Leken newspaper ka jo maza physical copy main hai wo kisi cheez main nahen.
http://www.brecorder.com/

Apart from that read articles of Honourable Saqib Sherani Sb in Dawn, his comprehension of taxation and economy are superb.

https://www.dawn.com/authors/436/sakib-sherani

مجھے پتہ بھی نہیں لگا اور ٹیسٹ بھی ہوا ہے یار

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Mr. Sammar waiting for your kind response please
1. Characteristics of good tax
2. A market where retailers and sellers, how to take tax from......
3. Taxation system in Pakistan progressive or regressive
4. Water tax
5. If company hide one register (as it maintains 2 registers), what can do
6. Which tax on Careem cab company
Thanks in Advance

__________________
FPSC is the laziest Department of Pakistan

1. A good tax policy is such a policy in which there is more incidence of direct taxes and less focus on indirect taxes. It should be progressive in nature so that the redistribution of wealth is done in society. The major chunk of FBR taxes come from indirect taxes and through withholding taxes which are presumptive in nature. Around 40% of these presumptive taxes are never adjusted. This regressive nature is against the sole of good tax policy. In developer countries the salary comprises 80-90% of deduction at source. Whereas, in Pakistan in FY 2015 salary comprised of 23% & 22% were customs import.
2. Commissioner IR has powers to depute any IR official (usually IIR) so as to check its inventory, semi-finished goods and finished goods as well as sale of goods at business premises. Even CCTV TV cameras could also be attached. Apart from from that though internal survey we come down to business activities of that businessperson.
3. Both. All indirect taxes such as sales tax, excise and customs are regressive. Apart from that Income Tax & CVT are direct and progressive taxes.
4. Water tax is collected by provincial Revenue department. Fundamentally, it is of agriculture department, but in Sindh Revenue dept collectes.
5. Commissioner or Board may write to NADRA to get all bank accounts, SECP (all stocks & shares), provincial Revenue dept ( all immovable properties, excise (all vehicles), PMEX (all commodities futures) & FIA (all foreign trips)
6. Careem have to pay 2 taxes, 1 is of sales tax on services to its respective provincial authority. Where as Income Tax to FBR. So, 2 taxes in total.

I believe I have fully answered your questions. Your further queries will be answered and it is better that you are asking in cssforum, so that others may also benefit.

Very much grateful Mr.Sammar
May God give you great opportunities in your life

__________________
FPSC is the laziest Department of Pakistan

2) Progressive tax:
• It is a tax in which the tax rate increases as the income increases.
• A progressive tax takes a larger percentage of income in taxes from the high-income group than it does from the low-income group.
• Under progressive taxes, the lowest income group including ones below the poverty level would pay little to nothing in taxes.
3) Regressive tax:
• It is a tax imposed in such a manner that the tax rate decreases as the amount of taxable income increases.
• The higher income group pays less in taxes than the lower income group.
• Regressive taxes impose greater tax burden on the poor relative to the rich.
• In case of regressive taxes there is an inverse relationship between the tax rate and the taxpayer's ability to pay.
• People with low income and low ability to pay, will pay higher taxes.
• This means that it hits lower-income individuals harder.
• Sales tax on food, clothing and transportation can be regressive.
• Since each person pays the same amount of money, it is a lower proportion for people with higher incomes
• Tobacco and gasoline taxes are highly regressive.
Example:
• If a person with 50 dollar income pays 5 dollars in gasoline tax, it is 10% of his income in taxes.
• But the person making 500 dollars, paying 5 dollars in gas taxes is only paying 1% of his income in this tax.
• Hence it is regressive.
• Sales taxes on essentials like food, clothing and housing make up a higher percentage of a lower income persons budget.
• In this case, even though the tax may be uniform (such as 7% sales tax in the state of Georgia), the lower income group is more affected by it because they are less able to afford the tax.
• Lotteries are also regressive by nature.
1) Proportional tax:
• It is a tax where the rate of taxation is fixed
• The amount of the tax is a fixed proportion (say 20%) of one's income
• It stays a fixed irrespective of how high or low the income is
For example:
• A 10% proportional tax would mean that one making 100 dollars pays 10% or 10 dollars in taxes, while someone making 500,000 dollars pays 50,000 dollars in taxes.

__________________
“What we need in this country today is more courage and more belief in the things that we have.”- Thomas J. Watson

Please continue sharing relevant definitions, material, etc. Wonderful people contributing to a noble cause. Senior members in the likes of Sir Sammer are a blessing indeed. Could anyone of you confirm if Careem and Uber pay any sort of taxes (sales tax on services, Income Tax to FBR) as mentioned by Sir. Thank you