HYDERABAD: Chief Minister Syed Qaim Ali Shah has expressed his strong reservations over the federal government’s act of recovering the gas development surcharge in name of ‘cess’, arguing that it is a provincial subject and, therefore, the Centre has no right to collect it.

Mr Shah was speaking to journalists after presiding over Sindh Agriculture University’s 8th convocation in Tandojam on Saturday.

“Sindh’s share under the head of gas development surcharge amounts to Rs80 billion, he said, and regretted that a resolution on the issue was bulldozed through the National Assembly despite the fact that it pertained to the provincial subject. “It is the right of provinces [to collect surcharge] which is now taken over by the federal government in name of cess,” he said.

According to him, Sindh produces more gas than any other province and provides it to the other federating units.

He said that the issue had been discussed in the recent past and he had lodged his protest over the federal government’s intentions arguing that it was not the ‘infrastructure cess’ but a gas development surcharge and, therefore, must be given to provinces, particularly Sindh.

The chief minister also complained that the federal government was not making adequate transfers to Sindh out of the divisible pool. “Last year, Sindh got less than its share. We are told that collection remained at a lower side in assessment.” he claimed.

“We were told that the federal government would provide Rs31-32 billion every month but the releases remained at Rs8-10 billion. We briefed the leader of the opposition in the upper house about the issue so that the opposition could take up the matter at that level,” he said.

In reply to a question, Mr Shah said that the Sindh government was ready to hold the local government election but some amendment was needed to be made to the LG law. He said the amendment would hopefully moved in the Sindh Assembly session on Monday.

After that, he added, it would be up to the Election Commission to announce a schedule for the LG election in Sindh.

Published in Dawn, January 18th, 2015

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