The Council of Common Interests (CCI) meets today (Sunday) to discuss general sales tax (GST) on services, the conditionalities of international donor agencies for release of funds to undertake construction of Diamer Bhasha Dam and deliberate upon resolving the simmering water dispute among the provinces.
It is learnt here on Saturday that the CCI would deliberate on the dispute between federal government and province of Sindh pertaining to GST on services which has been declared right of provinces under the 7th NFC Award. However, federal government intends to collect GST on behalf of the provinces so as to meet the IMF conditionalities through introduction of integrated reformed GST on goods and services.
Province of Sindh has its serious reservations over the federal government''s intention. Sources say that federal economic managers would try to get formal approval from the CCI on collection of GST on services by the FBR so that an integrated reformed GST is introduced from October 1, 2010.
FUNDING FOR BHASHA DAM The Bhasha Dam ran into snags when the World Bank conveyed to the government that it would not release funds as India has raised objections and claimed that the project was located in Gilgit-Baltistan which is considered a disputed territory. On the other hand Asian Development Bank (ADB) tied the release of funds to a resolution in favour of the project by the joint sitting of the Parliament. The ADB had also written a letter to the government in which it stated that Diamer-Bhasha Dam is a controversial project and there was need for developing political consensus on it.
However, the government had informed the ADB that the resolution could not be approved through joint sitting of the Parliament, as CCI was the appropriate forum for resolving such issues. Sources said the government has allocated Rs 10 billion from Public Sector Development Program (PSDP) of the current fiscal year for the construction of as many as five big dams. The feasibility and technical report of the Bhasha dam has already been completed.
According to 18th Amendment, Prime Minister Syed Yousuf Raza Gilani would chair the meeting and four chief ministers and three federal ministers would participate in it. This will be the first meeting of CCI in the tenure of new democratic government in which chief ministers of Punjab, Sindh, Khyber-Pakhtunkhwa and Balochistan would participate.
Reliable sources told Business Recorder that during the meeting the members of the CCI would pass unanimous resolution in favour of Diamer Bhasha Dam construction. Sources said Gilgit-Baltistan Chief Minister Syed Mehdi Shah would also participate in the CCI meeting on the special invitation of the Prime Minister. They said it is expected that the CCI would give formal approval to the construction of Bhasha Dam.
Sources said the government is also likely to take approval from the joint session of the Parliament for construction of Bhasha Dam. They said water dispute between Punjab and Sindh would also be discussed in the CCI meeting.
After approval of the 18th Amendment, the CCI was empowered and made an autonomous body, which could resolve provincial disputes as well as make policy for subjects of Federal Legislative List Part-II of the Constitution. After the abolition of Concurrent List, some subjects were placed in Federal Legislative List Part-II. The CCI would decide about the subjects of this list mostly related to the provinces.
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