The National Finance Commission (NFC) has agreed in principle to adopt a four-point multiple criteria for the distribution of resources under NFC Award, declare GST on services a provincial subject and give enough share to the provinces, particularly Balochistan, on account of Gas Development Surcharge (GDS). "This is a big victory for us," said Sindh Chief Minister Syed Qaim Ali Shah while addressing a crowded press conference at Chief Minister House on Tuesday.
He was flanked by coalition partners, Jam Madad Ali of PML-F, Amir Nawab Khan of ANP, Sardar Ahmed of MQM, Masroor Jatoi of NPP and cabinet members, including Pir Mazharul Haq, Ayaz Soomro, Zulfiqar Mirza, Shazia Marri, Agha Siraj Durrani, Murad Ali Shah and Jam Mehtab Dhar.
Terming it the most important issue for the province, Qaim said the last meeting of the NFC, which was held in Quetta on October 12 under the chairmanship of Finance Minister Shaukat Tarin, had decided in principle to adopt a multiple criteria for the distribution of NFC Award.
He said the good breakthrough was also backed by all the provinces, particularly Punjab, under which the most-awaited Award, that is due within a month or so, would now be distributed on the basis of backwardness, area, poverty and revenue generation/collection. "I thank all the provinces, especially Balochistan, for their support to us on the issue," the chief minister said.
Qaim expressed concern over what he said his experts had pointed out in the meeting, the "flight of (Sindh) resources at private level". About the non-NFC and longstanding issue of GST on services, Qaim said his side after a long constitutional struggle had succeeded in convincing the commission on the point that the levy was a provincial subject.
"As Articles 43 to 53 do not have any mention about taxing services by the federal government (in the provinces), the Musharraf regime had asked the provinces to legislate on it," he said. But, according to the chief minister, the provinces were not authorised to legislate on an issue that was not their domain. He said none of the 43 items on the federal government list was supporting the Centre's right to tax services in the federating units. "So they agreed that it is a provincial subject," he said.
About the third issue - GDS -, the chief minister said so far Balochistan was getting only Rs 2.5 billion under the GDS on 22 percent of its gas production but now its receipts would reach a satisfactory level. "Balochistan and Sindh with their 22 and 70 percent respective gas production would now get enough on account of GDS," he added.
Qaim while thanking the President and the Prime Minister said: "the difference would be clearly seen in the next budget." The chief minister and local government minister Agha Siraj Durrani also assured journalists that the long-pending balloting for plots for the new members of Karachi Press Club would be resolved after the ongoing Sindh Assembly session.
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