ISLAMABAD, Nov 15: The federal government is willing, albeit reluctantly, to share with the provinces authority to levy and collect taxes and has rejected the opposition demand that only three portfolios - defence, foreign affairs and finance - should be retained by the centre.

This was stated by Minister for Inter-Provincial Coordination Salim Saifullah on Wednesday.

The federal minister conceded that the idea of sharing with the provinces authority to collect taxes was fraught with difficulties.

"And we have formally rejected the demand of the opposition that the centre should retain only the three major portfolios," he said.

The leader of the house in the Senate, Wasim Sajjad, who also heads the parliamentary committee on provincial autonomy, said the centre could not be expected to deliver by retaining only three portfolios.

“This is an unjustified demand by the opposition,” he said.

The federal minister for inter-provincial coordination said the government was considering transferring 35 of the 47 items on the concurrent list to the provinces. But he hastened to add that this was just a proposal “and no decision has been taken”.

Mr Saifullah said the parliamentary committee headed by Mr Sajjad would meet soon to discuss various issues about greater provincial autonomy. He said the prime minister would be invited to the meeting, as indeed other coalition partners, including the Muttahida Qaumi Movement and People’s Party Patriots.

"We will try to persuade opposition members in the committee to help us fashion the new law on provincial autonomy. But if they do not attend the meeting, the committee will take a decision as early as possible,” he said, refusing to give a timeline for the legislation process.

Mr Saifullah pointed out that opposition leaders demanding provincial autonomy were riven by differences, adding that members from Sindh and Punjab did not always see eye to eye.