PESHAWAR, Feb 3: The NWFP cabinet on Tuesday approved a draft of a new law to replace the local bodies system introduced by former president Pervez Musharraf in 2001.
The draft Local Government Act, 2008, repealing the Local Government Ordinance (LGO-2001), was endorsed by the provincial cabinet in its 8th meeting held here with NWFP Chief Minister Ameer Haider Khan Hoti in the chair.
“The proposed local bodies system is almost the replica of the local council system introduced in 1979,” said Information Minister Mian Iftikhar Hussain, while briefing journalists soon after the cabinet’s meeting.
The provincial cabinet discussed the draft of the Local Government Act, 2008 at length and now it was being sent to the federal government for further action, the minister said.
The local bodies system introduced in 2001 had been put in sixth schedule, which restricts provinces of making any amendment in the system without the approval of the president.
“We have done our job and now it is up to the federal government to act,” said Mr Hussain.
The minister said the local bodies, established in 2001, were based on a complex system, as there was no coordination among provinces, districts and the federal government. Similarly, there was no sense of ownership of public affairs in the system that’s why all the provinces were opposing it and wanted to improve it, he remarked.
The proposed act, he said, was aimed at strengthening the local councils, as the union councils would remain intact, while the province would be the in charge of the local bodies system.
Sharing the salient features of the proposed act, the minister said rural and urban divide had been restored, as rural areas would have two tiers including union councils and district councils, whereas in urban areas there would be municipal committees and municipal corporations.
Similarly, the local bodies’ elections would be conducted by provincial election authority, to be established by the provincial government, on party bases. Also, establishment of accounts and grants committees to oversee financial system of the local councils were some of the important features of the proposed act, the minister explained.
Exemption of cinema from entertainment tax was another point on the agenda, which the minister said had been deferred by the cabinet.
The NWFP Excise and Taxation Department had prepared the proposal to exempt cinemas from entertainment tax in a bid to help the dying industry to overcome its financial crisis. The Punjab and Sindh governments had already waved off such levy.
The minister said that the cabinet decided to defer the issue because there were so many problems with the exemption of five marla houses from property tax, announced by former MMA government. “We want to resolve all the pending issues as well,” the minister said, adding both the issues would be taken up in the next meeting.
The provincial cabinet also approved amendments in the Seed Act 1976, which would pave the way for the private sector participation in the seed business because the public sector institutions could not handle it alone, the minister maintained.
He said that cabinet also reviewed progress on the previous meeting decisions, adding the important one was resolving the long standing issue of net hydel profit.
He said a special committee had been constituted by the prime minister to address the issue, adding that chief minister had sent a letter to the prime minister for convening meeting of the committee within one month time.
To a question, the minister said that fresh military operation in Swat was more accurate than the previous one, as the militants suffered heavy causalities. He, however, said the government even now was ready to negotiate with the militants willing to lay weapons.