Devolution dilemmas: SC to mull if centre or provinces should collect WWF payments
SC asks petitioner to deposit its Workers Welfare Fund payments in court
The lawyer said that since the enactment of the Sindh act, the federation has not questioned its powers by bringing it before the apex court. PHOTO: REUTERS
ISLAMABAD:
The top court is deciding that whether the federal or provincial governments would collect Workers Welfare Fund (WWF) contributions after the passage of the 18th Amendment.
A two-judge bench of apex court, headed by Chief Justice Anwar Zaheer Jamali, is hearing a plea filed by petroleum company PKP Exploration 2, and has restrained the Federal Board of Revenue (FBR) from collecting WWF payments from it till a verdict is reached.
The bench has asked the company to deposit its annual WWF payment — around Rs54.5 million — in the court. The bench has already issued notices to federal and provincial governments departments. The FBR collects between Rs16 and Rs18 billion from private companies under the WWF head.
Under the Workers Welfare Fund Ordinance, the fund was set up to provide residential accommodation and other facilities to workers. Under the ordinance, mandatory contributions are made by every industrial establishment with total annual income of over Rs500,000, with the contribution equal to two per cent of total income.
In May 2015, the Sindh Assembly passed the Sindh Workers Welfare Fund Act, under which the provincial government started collecting WWF contributions. But on January 14, 2016, the Sindh High Court declared that WWF contributions should be deposited with the FBR.
Petitioner’s counsel Raheel Kamran Sheikh contended that WWF should be collected by the provincial governments after the passage of the 18th Amendment, arguing that the responsibility of the welfare of labour had been devolved to the provinces.
The lawyer said that since the enactment of the Sindh act, the federation has not questioned its powers by bringing it before the apex court.
Raheel requested that the SC declare WWF payments made to the Sindh government as a fee.
The bench later adjourned the case till the last week of September.
Published in The Express Tribune, July 13th, 2016.
The top court is deciding that whether the federal or provincial governments would collect Workers Welfare Fund (WWF) contributions after the passage of the 18th Amendment.
A two-judge bench of apex court, headed by Chief Justice Anwar Zaheer Jamali, is hearing a plea filed by petroleum company PKP Exploration 2, and has restrained the Federal Board of Revenue (FBR) from collecting WWF payments from it till a verdict is reached.
The bench has asked the company to deposit its annual WWF payment — around Rs54.5 million — in the court. The bench has already issued notices to federal and provincial governments departments. The FBR collects between Rs16 and Rs18 billion from private companies under the WWF head.
Under the Workers Welfare Fund Ordinance, the fund was set up to provide residential accommodation and other facilities to workers. Under the ordinance, mandatory contributions are made by every industrial establishment with total annual income of over Rs500,000, with the contribution equal to two per cent of total income.
In May 2015, the Sindh Assembly passed the Sindh Workers Welfare Fund Act, under which the provincial government started collecting WWF contributions. But on January 14, 2016, the Sindh High Court declared that WWF contributions should be deposited with the FBR.
Petitioner’s counsel Raheel Kamran Sheikh contended that WWF should be collected by the provincial governments after the passage of the 18th Amendment, arguing that the responsibility of the welfare of labour had been devolved to the provinces.
The lawyer said that since the enactment of the Sindh act, the federation has not questioned its powers by bringing it before the apex court.
Raheel requested that the SC declare WWF payments made to the Sindh government as a fee.
The bench later adjourned the case till the last week of September.
Published in The Express Tribune, July 13th, 2016.