KARACHI, Dec 30: The committee on the National Finance Commission (NFC) Award has demanded immediate transfer of the right of collection of general sales tax on services to the provinces.

Presided over by Sindh Local Government Minister Agha Siraj Durrani, who is the committee’s chairman, the meeting was held at the Chief Minister’s House on Tuesday.

Provincial Irrigation Minister Syed Murad Ali Shah, Revenue Minister Jam Saifullah Dharejo, Information Minister Shazia Marri, Senior Minister Syed Sardar Ahmed, former senator Taj Haider, NFC representative Kaiser Bengali and the finance secretary attended the meeting.

It was observed that GST on services, which was the right of the provinces as per the constitution, was transferred to the federation through an ordinance during an undemocratic era. The meeting proposed that the right of tax collection should be given back to the provinces. It was decided that the chief minister would be requested to approach the federal government for immediate transfer of the right of general sales tax collection on services to the provinces because the tax collected in this regard, if provided to the provinces, would be a great financial support.

The meeting strongly criticised the NFC award decision taken by the caretaker government of 1996 just a few days before taking oath of the elected government.

Taj Haider said it had been clearly mentioned in PPP’s manifesto that the NFC Award formula would be based on multiple factors. He said that the multi-criteria formula was also part of the manifestoes of other political parties. Syed Murad Ali Shah said the committee also discussed the violations regarding the NFC Award committed during the last eight years. The NFC Award given by former president Pervez Musharraf was unconstitutional, he added.

The meeting observed that strong harmony existed among all the provinces as the country had a stable democratic system and it was the time that the new NFC Award should be based on the formula of multiple factors.

Shazia Marri said President Asif Ali Zardari took keen interest in the NFC Award issue and wanted to get it resolved as soon as possible. She said GST on services was the constitutional right of the provinces and therefore it should be immediately transferred back to the provinces. Sindh Minister Agha Siraj Durrani decided to hold the next meeting of the committee on January 6, 2009 at 11am at the Sindh Chief Minister’s House.—PPI