PESHAWAR, Dec 4: NWFP received less than Rs100m under the head of general sales tax (GST) on services — a provincial levy collected by the Central Board of Revenue (CBR) — during the first five months of the current financial year.

The funds transferred to the province appear to be less than 25 per cent of the total amount the provincial government has been estimated to receive under this head.

NWFP has been estimated to get Rs406 million under this head during 2003-04 — Rs40 million more than the amount the province had received during the last financial year. “Transfers under this head remained negligible,” commented an official of the provincial government, expressing the hope the situation was likely to improve in the last quarter of the current financial year.

On proportionate basis, maintained the officer, the province should receive slightly over Rs200m by December 31, 2003. “However, the province is not likely to get Rs200m by the end of first half of this fiscal year,” he added.

A total amount of around Rs70 million was released during July-Sept 2003-04 and a tranche of less than Rs15 million was released in October and in November along with the direct federal transfers made in the same period.

Official sources did not appear optimistic about NWFP’s chances of getting the full amount it had been conveyed by the federal government.

“In view of the last three years, it appears to be a bit difficult that the provincial government get the full amount,” said the official, adding that “there is a hope that the last financial year’s disbursement level would be surpassed”.

Against the initially conveyed annual projection of Rs413m the province had received a total of Rs365 million under the head of GST on services during 2002-03.

Sources said that recoveries under this head was showing improvement with every passing year making them to believe that this time round the province would get more than the amount it received during the last financial year.