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Despite repeated promises, the Federal Finance Ministry has not transferred Rs 1.5 billion to Sindh government collected by the Federal Board of Revenue (FBR) in the head of Federal Excise Duty (FED) from the province. Well-placed sources in Sindh Revenue Board (SRB) told this scribe that the FBR officials during a meeting held in Islamabad a few weeks ago had agreed to transfer the amount of services taxes collected from Sindh to Sindh government.
After the meeting, the FBR had conveyed to Finance Ministry that it had collected Rs 4478.42 million (including Sindh's Rs 1.5 billion) in the head of sales tax and FED (sales tax mode) during the month of June 2011 and July 2011 from all over the country, sources said.
Later, the Finance Ministry informed Sindh government about the new development and asked for the exact amount collected from Sindh, they added. Subsequently, SRB wrote a letter to Finance Ministry on May 5, wherein it was stated that FBR had collected Rs 1.5 billion from Sindh and demanded to return the same.
According to sources, the SRB authorities were hoping that after receiving SRB letter the Finance Ministry would deposit the Rs 1.5 billion in the exchequer of Sindh government. But the same has not yet been done. They said that Sindh Chief Minister Syed Qaim Ali Shah had also written a letter to the Federal Finance Minister Abdul Hafiz Sheikh but reply had not yet received any reply.

Copyright Business Recorder, 2012

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