On Friday, September 27, 2024, Dr. Raheal Ahmad Siddiqui, Former Civil Servant delivered a talk to the participants of 36^th SMC on “Provincial & Local Taxation”.

Dr. Raheal Ahmad Siddiqui delivered a comprehensive talk on the taxation structure at the provincial and district levels in Pakistan, offering insights into the operational challenges and potential areas for improvement. He began by outlining the current framework of local taxation, including property tax, sales tax on services, and other levies imposed by provincial and district authorities.

Dr. Siddiqui highlighted the critical capacity issues faced by these tax administrations, such as inadequate human resources, lack of modern technology, and inefficient collection mechanisms. These factors, he explained, significantly impact revenue generation and hinder the ability of provincial and district governments to meet their financial needs A significant portion of the talk was dedicated to the discussion of local resource generation, where Dr. Siddiqui emphasized the importance of enhancing local autonomy and finding new revenue streams. He suggested that there is untapped potential in agricultural income tax, which remains underutilized due to weak enforcement, political resistance, and legal loopholes.

to conclusion, Dr. Siddiqui called for reforms to build institutional capacity at the local level, improve sax collection infrastructure, and promote transparency. By addressing these challenges, he argued, provincial and district governments could better harness their revenue potential and contribute more effectively to Pakistan’s overall economic development.