The World Bank’s recent de­mand for Pakistan to estab­lish a unified General Sales Tax (GST) collection agency has sparked a critical debate. While the objective of streamlining tax collec­tion and broadening the tax base is undeniably desirable, the propos­al necessitates a closer examination through the lens of Pakistan’s unique eco­nomic and political landscape.

Firstly, the 18th Amendment sig­nificantly devolved power from the federal government to the provinces. This included the trans­fer of authority over several taxes, including aspects of GST. Imple­menting a unified agency in such a decentralised environment rais­es concerns about potential fed­eral overreach and infringement on provincial autonomy. Negoti­ations and a consensus-building approach involving all stakehold­ers are crucial to ensure a smooth transition that respects the exist­ing constitutional framework.

Furthermore, the success of such a unified agency hinges on Paki­stan’s current tax infrastructure. Are our existing systems robust and efficient enough to handle the complexities of a centralised collec­tion mechanism? The World Bank acknowledges issues like overlap­ping service taxes collected by both federal and provincial entities. Ad­dressing these redundancies and ensuring........

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