The Functional Committee on Problems of Less Developed Areas has decided to take up the matter of discriminatory tax treatment with Balochistan in the Senate, as the Federal Board of Revenue (FBR) has refused to grant rebate on sales tax on dumper trucks in the areas of chromite and coal in the province.
It is learnt that Functional Committee on Problems of Less Developed Areas has taken the decision in the last meeting. The committee was informed by Federal Board of Revenue that the matter of rebate on sales tax on dumper trucks in the areas of chromite and coal in Balochistan was considered and a decision was made that since it had no exclusive role linked to mining and that it was just another commercial vehicle, therefore, the rule of sales tax rebate did not apply. Machinery related to mining accrues an exemption. However, in the case of Thar coal project in Sindh, it was granted under a sovereign agreement. The chairman committee expressed serious concern over the decision and said the matter would be taken up in the Senate as it discriminated against the province of Balochistan and it was recommended by the Senate.
The chairman committee asked FBR when it would activate customs gateways established in Badini and Qamar-ud-Din 15 years ago whereas it was a peaceful area and the FBR could use the NBP branch of Muslim Bagh. However, the FBR said the branch had to be in the vicinity and it ought to have a customs booth. Officials said NBP found that opening a branch in the area was not economically feasible. After a detailed discussion, the committee members decided to summon chairman FBR to the next meeting for a satisfactory answer.
The committee recommended unanimously that in the light of the Senate's recommendation, rebate may be granted on sales tax on dumper trucks used exclusively for the mining of chromite and coal in the province of Balochistan and Thar. In this regard the rules should ho uniform for all provinces and there should be no discrimination or favoritism for one or the other province.
The committee recommended unanimously that the custom gate way of Qamar-ud-Din Karez and Badini in district Killa Saifulah in Balochistan should be made functional in a period of two months from the date of issuing minutes. The committee unanimously recommended that a branch of the National Bank of Pakistan should be established in Tehsil Darogh of district Musa Khel.
The committee unanimously recommended that the loans for poor farmers should be waived off in accordance with the resolution passed by Senate of Pakistan. The committee unanimously recommended that underground water level is falling day by day in different parts of Balochistan and Planning Division in consultation with the Ministry of Water & Power must make sure that heavy horsepower motors are being used to solve this issue. It has been decided that the matter will be taken up soon with the concerned departments including Secretary Irrigation Balochistan/Quetta and members of Farmers Association of Balochistan.
It recommended that the warrant for arresting those poor farmers who are unable to pay back the governmental loans of ZTBL in sufficient period, should be withdrawn at once. It recommended that Chashma-Zhob transmission line project should be initiated on early basis and Planning and Finance Division should do their respective jobs in this respect in consultation with WAPDA.
The committee unanimously recommended that the cadet colleges should be established in districts Sherani and Musa Khel in the same pattern followed by Finance Division to establish other colleges. The committee unanimously recommended that the funds for land acquisition for CPEC projects for constructions of roads from DI khan to Zhob and from Zhob to Kuchlak and from Quetta to Sorab should be at allocated, not less than Rs 30 billion.
The committee said that maximum amount of funds should be provided for cultivation of olive in Balochistan which will boost the economy of Pakistan. The committee unanimously recommended that a bailout package may be provided by the federal government to build small dams in Balochistan to address the water crisis in the province.
The committee unanimously recommended that in consultation with Ministry of Information and Broadcasting/PTV, the required amount may be provided by Finance Division for erection of PTV boosters/towers so that the footprint of the national television could be extended to Ziarat, Barkhan, Musa Khel, Muslim Bagh and other less developed areas. The recommendations for less developed areas (Balochistan province) made for budget 2017-18, passed by Senate of Pakistan, a copy of which was provided to the Finance and Planning Divisions during meeting, may be looked into and remedial steps be taken by the respective divisions, the committee recommended.
The Finance Division told the committee that it was not possible to allocate funds for the establishment of cadet colleges in Musakhel and Shirani districts. However, it agreed to get advice when it was reminded that it did fund cadet colleges in other areas. The committee was informed that there was no share for FATA in the NFC Award as funds were being provided by the federal government from its own resources which stood at Rs 49 billion during FY 2017-2018. In the third NFC meeting (2016), three provinces knocked down federal government proposal of allocating 4 percent of divisible pool to FATA, AJK and GB. However, the federal government would continue to pursue the matter in the NFC.
The committee proposed to put all 30,000 water pumps operating in Balochistan on solar power which would save around Rs 29 billion subsidy provided by the federal government and farmers would get a steady power supply reflecting in better agriculture yield leading to prosperity in the province. The secretary planning stated that the division would take action only after the concerned ministry's request which, in this case, was never received.
The Ministry of Power in its briefing told the committee that a PC-1 related to conversion of solar power supply to 30,000 water pumps in Balochistan was almost ready with a five years cost of Rs 68 billion and it would be ready within a week. The committee decided on a presentation of the PC-1 in the presence of Balochistan Zameendar Action Committee and provincial secretary irrigation before it was processed. On the issue of waiving off agri-loans for poor farmers as per resolution passed by Senate of Pakistan, the committee was informed that Balochistan was recipient to maximum rebates and since it was not a calamity-hit area, it was not possible to waive off the said agri-loans.
In a discussion on the water crisis in Balochistan, the committee was informed by secretary planning that the water crisis was so serious in the province that a Netherlands university research had proposed that Quetta residents may have to be moved to water-rich Jhal Magsi or Naseerabad districts.
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