4 research outputs found
The Determinants of Rates of Octroi Tax in Pakistan
Octroi is a tax imposed by local governments in Pakistan on
commodities imported into the municipal limits for local use, sale, or
consumption. It is levied generally by urban local councils on goods
coming in by all modes-sea, land, and air transport. The point of
assessment is alongside roads at octroi posts situated at or before
municipal boundaries, at railway stations, seaports or airports. Octroi
is currently the largest source of revenue to urban local councils in
the country and contributes 86 percent to total tax revenues and over 59
percent to total local revenue receipts (see Table I). Its revenue
significance (in terms of share in total receipts) has increased over
the years. In 1987-88, it accounted for about 57 percent of total local
receipts. Also, revenue generation from octroi is higher than that by
any provincial tax. In 1991-92, total national collection from octroi
was Rs 5.5 billion as compared to Rs 3.5 billion from stamp duties, the
largest provincial tax source
Dynamic Budgetary Consequences of the 1991 NFC Award
The National Finance Commission (NFC) award of 1991 has been
acclaimed to be a historic achievement of the previous elected
government. It has come after a gap of many years (due since 1979) and
some abortive attempts earlier.! Meanwhile, the provinces had run into
large, chronic deficits on the current account, indicating the growing
inadequacy of divisible pool transfers as per the provisions of the 1974
award. Consequently, as an ad hoc provision, deficit grants and other
subventions had been used increasingly to support the on-going
operations of the provinces. At their peak in 1987-88, these grants were
Rs 17 billion (see Table 1), equivalent to about 2 percent of the Gross
Domestic Product (GDP) and financed over one-fourths of the provincial
current expenditure. Also, the federal government took over the
responsibility of provision of some provincial responsibilities as
contained in the Concurrent List of the Constitution like SCARPS, flood
control, fertiliser subsidy, universities, etc