Sindh to start collecting sales tax on cellular services again

Defaulting, non-functional mills to be deprived of wheat quota, subsidy


November 22, 2019
PHOTO: AFP/FILE

KARACHI: The Sindh cabinet has decided to apply sales tax on cellular services and deprive defaulting and non-functional mills of wheat quota and subsidy. The decisions were taken during a cabinet meeting on Thursday.

Wheat quota and subsidy

The meeting, which was attended by ministers, advisers, special assistants and government officials, was informed that the provincial government has purchased wheat from the Pakistan Agriculture Storage and Services Corporation, in a bid to control the rising price of the crop.

The participants of the meeting decided to supply each 100 kilogrammes of wheat bag to flour mills at a subsidised rate of Rs3,450, provided that mills are functional and non-defaulter. The cabinet, however, decided to give a 15-day extension to the defaulting mills to clear their dues and qualify to receive wheat at the subsidised rate. It was also decided that defaulting and non-functional mills, as well as those that were involved in a plea bargain, will be deprived of wheat quota.

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Speaking in this regard, Sindh Chief Minister (CM) Syed Murad Ali Shah said, "Mill owners will have to produce their electricity bills as proof that their mills are functional," and added that mills that will purchase wheat at subsidised rates but will later stop functioning will be penalised.

The meeting was informed that flour mills involved in plea bargain paid around Rs2 billion to the National Accountability Bureau and the provincial government needs to coordinate with the anti-graft watchdog to retrieve this amount.

Sales tax on cellular services

The cabinet also decided to apply sales tax on cellular services. The Supreme Court of Pakistan had earlier restricted the provincial government from imposing sales tax on cellular services. However, the restriction lasted from June 13, 2018 to Aril 24, 2019, following, which, the Sindh government now has the authority to collect the tax.

The meeting was informed that the provincial government incurred a loss of Rs10 billion due to the suspension of the sales tax.

Recruitment Policy

Ministers and other officials decided to form a selection committee, headed by the deputy commissioner, to carry out recruitments on posts of grade BS-1 to BS-4. Appointments on posts of BS-5 to BS-15 will be made through a third party, the CM said, adding that employees on posts of grades higher than BS-15 will be recruited by the Sindh public Service Commission.

The CM formed a committee to devise a mechanism for recruitment on posts of BS-5 to BS-15 and directed it to submit its recommendations within 15 days. He further directed the police department officials to engage IBA for carrying out the recruitment test for the department instead of NTS and other bodies.

Wildlife Act 2019

The Sindh cabinet also approved the Sindh Wildlife Protection, Preservation, Conservation, and Management Act, 2019. The new law prohibits hunting, shooting, killing, trapping, snaring and the poisoning of wild animals found in the protected areas of Sindh. As per the act, the hunting of game animals is to be regulated. The cabinet has referred the bill to the provincial assembly for legislation.

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Sindh Sustainable Forest Management Policy

It also approved the Sindh Sustainable Forest Management Policy, 2019, aiming to maintain, restore, and manage the forest resources by following the highest standards of professional forestry, promoting public awareness and participation, strengthening institutional capacities and mobilising stakeholders' to gain their support.

Moreover, the cabinet members expressed concerns over the Sindh governor's "unnecessary objections" on the Sindh Coastal Development Authority and approve the bill, thereafter referring it to the assembly for legislation.

Sindh Hindu Marriage (Amendment) Act, 2018 and the Sindh Employees Social Security Bill, 2016 were also approved by the cabinet.

Published in The Express Tribune, November 22nd, 2019.

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