ISLAMABAD: Federal government has said that the President has can extend National Finance Commission (NFC) award for one year, if consensus would not be made among provinces and the federal government. All provinces were demanding more share in tax revenue from the centre.
Negotiations for the 9th NFC award were started here in Islamabad on Tuesday. The federal government and all four provinces failed to come on an agreement in the session.
Provinces were of the view that their responsibilities and expenses had increased after 18th amendment so their share should also be increased according to their needs.
Federal Finance Secretary Waqar Masood said that the President could extend the current award if consensus could not be made in time.
According to current NFC current formula, 82% of the award is based on provincial population, 10.3% based on poverty and lack of infrastructure, 5% on revenue collection, and 2.7% on the basis of inverse population density.
Punjab was also in favor of enhancing provinces shares in federal taxes.
