Managing the Public Finances INDIRECT TAXES • Higher Rates on Import Duty • Harmonization of the Sales Tax** • Broadening the Base of Excise Duty • Levy of Sales Tax on Import of Services • Levy of Sales Tax on Retail Prices • Introduction of a Regime of ITPs • Others TOTAL • Higher‘Abiana’ Charges* • Higher Tolls on Motorways NON-TAXES TOTAL OVERALL ADDITIONAL REVENUE *Collection by Provincial Governments **Collection by both the Provincial and Federal Governments Revenue (Rs in Billion) 275 150 45 75 35 45 35 660 (1% of GDP) Revenue (Rs in Billion) 60 50 110 (0.2% of GDP) 1455 (2.2% of GDP The recommendations now focus on the expenditure side of the Federal and Provincial Governments. 16.3 Increases in Employee Remuneration The salaries allowances and pensions of government employees have increased rapidly due to periodic awards announced in the budgets. Also, the employment in the Public Administration and Defense sector has increased significantly by almost 4.9 percent per annum, especially in the social services. Pensions alone required an outlay of over Rs 1101 billion in 2021-22. An analysis is undertaken of the trend in real incomes of government employees in Table 16.6. The perhaps not so surprising finding is that the levels of compensation, after adjusting for inflation, have risen in real terms from 2015-16 to 2020-21 by 10 percent. This has happened at a time when real wages in the private sector have tended to fall. 167