and request that Commission to investigate, in accordance with such instructions as he may give to them, and to report to him on, the matters to which the complaint relates, or such of those matters as he may refer to them. (2) A Commission so appointed shall investigate the matters referred to them and present to the President a report setting out the facts as found by them and making such recommendations as they think proper. (3) If it appears to the President upon consideration of the Commission's report that anything therein contained requires explanation, or that he needs guidance upon any point not originally referred by him to the Commission, he may again refer the matter to the Commission for further investigation and a further report. (4) For the purpose of assisting a Commission appointed under this Article in investigating any matters referred to them, the Supreme Court, if requested by the Commission so to do, shall make such orders and issue such letters of request for the purposes of the proceedings of the Commission as they may make or issue in the exercise of the jurisdiction of the Court. (5) After considering any report made to him by the Commission, the President shall give such decision and make such order, if any, in the matter of the complaint as he may deem proper. (6) Effect shall be given in any Province affected to any order made under this Article by the President, and any Act of a Provincial Legislature which is repugnant to the order shall, to the extent of the repugnancy, be void. (7) The President, on application made to him by the Government of any Province affected, may at any time, if after a reference to, and report from, a Commission appointed as aforesaid, he considers it proper so to do, vary any decision or order given or made under this Article. (8) An order made by the President under this Article may contain directions as to the Government or persons by whom the expenses of the Commission and any costs incurred by any Province or persons in appearing before the Commission are to be paid, and may fix the amount of any expenses or costs to be so paid, and so far as it relates to expenses or costs, may be enforced as if it were an order made by the Supreme Court. 155. If it appears to the President that the interests of the Capital of the Federation or of any of the inhabitants thereof, in the water from any natural source of supply in any Province have been or are likely to be affected prejudicially by— (a) any executive action or legislation taken or passed, or proposed to be taken or passed, or (b) the failure of any authority to exercise any of their powers, with respect to the use, distribution or control of water from that source, he may, if he thinks fit, refer the matter to a Commission appointed in accordance with the provisions of the last preceding Article, and there-upon those provisions shall apply as if the Capital Interference with water supplies of the Capital of the Federation. Jurisdiction of courts excluded. Provisions with respect to InterProvincial co-ordination. were a Province and as if a complaint with respect to the matter had been made by the Government of that Province to the President. 156. Notwithstanding anything in this Constitution, neither the Supreme Court nor a High Court nor any other court, shall have jurisdiction to entertain any action or suit in respect of any matter if action in respect of that matter might have been taken under any of the last three preceding Articles by the Government of a Province, or the President. Inte -Provincial Co-ordination 157. If at any time it appears to the President that the public interests would be served by the establishment of an Inter-Provincial or a Federal Council charged with the duty of (a) inquiring into and advising upon disputes which may have arisen between Provinces, or between one or more Provinces and the Federation, (b) investigating and discussing subjects in which some or all of the Provinces, or the Federation and one or more of the Provinces, have a common interest, or (c) making recommendations upon any such subject and, in particular, recommendations for the better co-ordination and uniformity of policy and action with respect to that subject, it shall be lawful for the President to establish such a Council, and to define the nature of the duties to be performed by it, and its organization and procedure. Taxes on income. Federal du ties of excise (including duties on salt) and export duties PART VII Finance, Property, Contracts and Suits CHAPTER 1.-FINANCE Distribution of Revenue between the Federation and the Provinces 158. (1) Taxes on income other than agricultural income shall be levied and collected by the Federation, but such percentage of the net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds, attributable in respect of Federal emoluments, as may be prescribed by Order of the President, shall not form part of the Federal Consolidated Fund, but shall be assigned to and distributed among the Provinces in such manner as may be prescribed by the Order. (2) In this Article, (a) "taxes on income" includes a corporation tax; and 159. Federal duties of excise (including duties on salt) and export duties shall be levied and collected by the Federation, but, if an Order of the President so provides, there shall be paid out of the Federal Consolidated Fund to the Provinces sums equivalent to the whole or any part of the net proceeds in any financial year of thoes duties, and those sums shall be distributed among the Provinces in such manner as may be so prescribed. 160. Taxes on the sale and purchase of goods shall be levied and collected by the Federation, but such portion of the net proceeds in any financiel year of any such tax as may be prescribed by Order of the President shall not form part of the Federal Consolidated Fund, but shall be assigned to and distributed among the Provinces in such manner as may be so prescribed. 161.-(1) No Bill or amendment which imposes or varies any tax or duty in which Provinces are interested, or which varies the meaning of the expression "agricultural income" as defined for the purposes of the enactments relating to income-tax, or which affects the principles on which under any of the foregoing provisions of this Chapter moneys are or may be distributable to Provinces shall be introduced or moved in the National Assembly except with the previous sanction of the President. (2) In this Article, the expression "tax or duty in which Provinces are interested" means (a) a tax or duty the whole or part of the net proceeds (b) a tax or duty by reference to the net proceeds whereof sums 162. In the foregoing provisions of this Chapter, "net proceeds" means, in relation to any tax or duty, the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty, or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Auditor-General of Pakistan, whose certificate shall be final. 163. Such sums as may be prescribed by Order of the President shall be charged on the Federal Consolidated Fund in each year as grants-in-aid of the Provincial Consolidated Funds of such Provinces as the President may determine to be in need of assistance, and different sums may be prescribed for different Provinces. 164. A Provincial law may impose taxes, not exceeding such limits as may from time to time be fixed by Act of the Federal Legislature, on persons engaged in professions, trades, callings or employments, and no such Provincial law shall be regarded as imposing a tax on income. Miscellaneous Financial Provisions 165. The Federation or a Province may make grants for any purpose, notwithstanding that the purpose is not one wih respect to which the Federal or the Provincial Legislature, as the case may be, may make laws. Taxes on sale and purchase of goods. Prior sanc tion of President required to Bills affecting taxation in which Provinces are interested. Calculation of "net proceeds', etc. Grants from Provincial taxes in respect of professions, etc. Grants out of Consolidated Funds Previous sanction of President to legislation with respect to State Bank, cur 166. No Bill or amendment which affects the coinage or currency of the Federatian, or the constitution or functions of the State Bank of Pakistan, shall be introduced or moved in the National Asembly without the previous sanction of the President. rency and coinage. Exemption of certain public property from taxation. 167.-(1) The Federal Government shall not, in respect of its property or income, be liable to taxation under any Provincial law, and, subject to clause (2), a Provincial Government shall not, in respect of its property or income, be liable to taxation under a Federal law or under a Provincial law of any other Province. (2) If a trade or business of any kind is carried on by or on bebalf of the Government of a Province outside that Province, that Government may, in respect of any property used in connection with that trade or business or any income arising from that trade or business, be taxed under a Federal law or under a Provincial law of the Province in which that trade or business is carried on. (3) Nothing in this Article shall prevent the imposition of fees for services rendered. CHAPTER 2.-BORROWING AND AUDIT. Borrowing by Provincial Govern ment. Borrowing 168. The executive authority of the Federation extends to borrowing upon the security of the Federal Consolidated Fund within such limits, if any, as may from time to time be fixed by Act of the Federal Legislature, and to the giving of guarantees within such limits, if any, as may be so fixed. 169.-(1) Subject to the provisions of this Article, the executive authority of a Province extends to borrowing upon the security of the Provincial Consolidated Fund within such limits, if any, as may from time to time be fixed by Act of the Provincial Legislature, and to the giving of gurantees within such limits, if any, as may be so fixed. (2) The Federation may, subject to such conditions, if any, as it may think fit to impose, make loans to, or, so long as any limits fixed under the last preceding Article are not exceeded, give guarantees in respect of loans raised by, any Province, and any sums required for the purpose of making loans to a Province shall be charged on the Federal Consolidated Fund. (3) A Province may not, without the consent of the Federation, borrow outside Pakistan, nor without the like consent raise any loan if there is still outstanding any part of a loan made to the Province by the Federation, or in respect of which guarantee has been given by the Federation; and a consent under this clause may be granted subject to such conditions, if any, as the Federation may think fit to impose. (4) A consent required by the last preceding clause shall not be unreasonably withheld, nor shall the Federation refuse, if sufficient cause is shown, to make a loan to, or to give a guarantee in respect of a loan raised by, a Province, or seek to impose in respect of any of the matters aforesaid any condition which is unreasonable, and, if any dispute arises whether a refusal of consent, or a refusal to make a loan or to give a guarantee, or any condition insisted upon, is or is not justifiable, the matter shall be referred to an arbitrator appointed by the Chief Justice of Pakistan whose decision shall be final. Audit and Accounts 170.-(1) There shall be an Auditor-General of Pakistan, who shall be appointed by the President, and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court. (2) Before he enters upon his office, the Auditor-General shall make before the Chief Justice of Pakistan an oath in such form set out in the Second Schedule as is applicable to his office. (3) The conditions of service of the Auditor-General shall be such as may be prescribed by Order of the President, and he shall not hold any office of profit in the service of Pakistan before the expiration of two years after he has ceased to hold that office. (4) The Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Federation and of the Provinces as may be prescribed by, or by rules made under, an Order of the President, or by any subsequent Act of the Federal Legislature varying or extending such order: Provided that no Bill or amendment for the purpose aforesaid shall be introduced or moved in the National Assembly without the previous sanction of the President. 171. (1) If a Provincial Legislature passes an Act charging the salary of an Auditor-General for that Province on the Provincial Consolidated Fund, an Auditor-General of the Province may be appointed by the Governor to perform the same duties and to exercise the same powers in relation to the audit of the accounts of the Province as would be performed and exercised by the Auditor-General of Pakistan, if an Auditor-General of the Province had not been appointed: Provided that no appointment of an Auditor-General in a Province shall be made until the expiration of at least three years from the date of the Act of the Provincial Legislature by which provision is made for an Auditor General of that Province. Auditor General of Provincial General. |