7th NFC Awards
- Location: Lahore
- Chairperson: Finance Minister Shaukat Tarin
- Duration of arguments: 3 days
Provincial share of the divisible pool would increase from the present 47.5 per cent to 56 per cent in the first year of NFC (2010–2011) and 57.5 per cent in the remaining years of the award under the vertical distribution of resources. He claimed that this share would virtually be over 60 per cent. During Musharraf regime, provinces were demanding for a 50% provincial share in the divisible pool.
The federal government has agreed to cut tax collection charges from 5.0 per cent to 1.0 per cent and this amount would also be added to the divisible pool. About the thorny issue of sales tax on services, he said the NFC recognised sales tax on services as a provincial subject and it mightbe collected by the respective provinces.
Read more about this topic: NFC Award