There is something fundamentally wrong with Pakistan’s constitutional structure regarding distribution of taxation powers between the federation and the federating units. In all major federations — the US, Canada, and India — the federating units have the exclusive right to levy tax on goods and services transacted within their geographical boundaries. In Pakistan, the Constituent Assembly took away the right of levying sales tax on goods from provinces in 1948. In the seventh award as well all the four provinces conceded that forthcoming Value Added Tax (VAT) on goods will be levied by the Centre.