Rawalpindi: The Punjab government has categorically declared that the Federal government or its agencies including Federal Board of Revenue (FBR) are not legally empowered to collect Workers Welfare Fund (WWF) from the Punjab following Eighteenth Amendment.
The Punjab Government has informed its Labour and Human Resource Department that the Workers Welfare Fund Ordinance, 1971 is no more applicable to the Punjab with effect from December 31, 2019.
The Federal Government is not legally competent to collect workers welfare fund from the Punjab, as after the Eighteenth Amendment, the Fund has fallen under provincial domain and the Government of Punjab collects the fund within its provincial boundaries.
A letter written by the Punjab Law and Parliamentary Affairs Department to the Secretary, Labour & Human Resource Department Punjab, a copy of which is available with Business Recorder, states that Punjab has enacted Punjab Workers Welfare Fund Act, 2019 and repealed the Workers Welfare Fund Ordinance, 1971 to the extent of the Punjab..
The Federal Government under the Works Welfare Fund Ordinance, 1971 was collecting workers welfare fund from the provinces through FBR. Under the Ordinance, an industrial establishment contributed 2% of its assessable income, when it exceeded Rs. 500,000/- in an accounting year. After the 18th Amendment, the subject of "welfare of labour" was devolved to the provinces, hence Sindh and Punjab legislated their respective WWF laws.
The letter stated that before the Constitution (Eighteenth Amendment Act, 2010) the subjects, inter alia, ‘welfare of labour’ and ‘conditions of labour’ existed at Entry No. 26 in the Concurrent Legislative List, Fourth Schedule of the Constitution of Pakistan. However, after omission of the Concurrent Legislative List, the said subjects are not included in the Federal Legislative List’ meaning thereby they devolved upon the provinces.
The letter further states that under Clause (c) of Article 142 of the Constitution, a provincial assembly shall, and Majlis-e-Shoora shall not have powers to make laws with respect to any matter no enumerated in the Federal Legislative List. Further, Article 143 envisages repugnancy of any provincial laws only when the Majlis-e-Shoora (Parliament) has competence to make such laws.
Since Majlis-e-Shoora is not competent to make laws on the above subjects now, and the provinces have the exclusive domain to legislate on these subjects, the question of supremacy of the Federal Laws does not arise.
The letter goes on stating that under Clause 7 of Article 270 (AA), all taxes and fees levied under any law in force immediately before the commencement of the 18th Amendment, shall continue to be levied until they are varied or abolished by an Act of the appropriate legislature, which is provincial assembly of the Punjab in the present case.
The letter concludes by saying that in view of the above legal scenario, provincial assembly of Punjab enacted Punjab Workers Welfare Fund Act, 2019, which came into force on 31-12-2019 and the said Act repealed the Workers Welfare Fund Ordinance, 1971 to the extent of Punjab.
Hence, the Workers Welfare Fund Ordinance, 1971 is no more applicable to the Punjab with effect from December 31, 2019. The Federal Government or any of its agencies is not legally competent to collect workers welfare fund from the Punjab, it added.
Copyright Business Recorder, 2020