Pakistan, June 8 -- The Pakistan Stock Exchange (PSX) has called on federal and provincial governments to address conflicts over the collection of sales tax on services. PSX wants the Council of Common Interest (CCI) to resolve the jurisdiction differences among provinces. They hope CCI will create a fair revenue-sharing formula for each province to end the ongoing dispute.

The issue arises because Sindh, Punjab, and Khyber Pakhtunkhwa have overlapping laws on which province can collect sales tax on services. Sindh's law says tax is collected where the business is registered, while Punjab and KP tax where the service is provided. PSX highlighted that this legal confusion affects the entire services sector, including many firms listed on ...