Sindh deplores funds deduction

CM says action by FBR an attempt to cripple the provincial govt financially

KARACHI:

The federal government, in violation of the Constitution of Pakistan and the Supreme Court's decision, has deducted Rs31.9 billion out of Rs35 billion at source from a 15-day (February 1-15) share of Sindh government and released only Rs3 billion which is an attempt to cripple the provincial government financially.

This was disclosed by Sindh Chief Minister Syed Murad Ali Shah in his meeting with the editors of newspapers and directors of news channels here at CM House.

The chief minister briefed the senior media persons about the attitude of the federal government towards Sindh and sensitised them about issues such as at source deduction from Sindh government share, water and gas shortage, imposition of unilateral transfer, posting rotation policy.

He also discussed economic crisis, curbs against media, and various others social issues against which Chairman Bilawal Bhutto Zardari will lead a long march from Karachi to Islamabad from February 27.

At Source dedication

The CM said that that a bilateral MoU was signed between Sindh Revenue Board (SRB) and the Federal Board of Revenue (FBR) on March 13, 2014 in connection with Cross Input tax Adjustment - meaning thereby the taxpayers would be allowed to adjust in their sales tax return, the input tax paid in the other jurisdiction.

He added such cross-adjustments were supposed to be scrutinised and reconciled and the net amount to be payable to the administration in whose return higher quantum of cross-adjustment was made. "This arrangement gave rise to some serious differences; therefore, another agreement was signed in August 2016 to implement the MOU.

Shah said that a joint committee as laid down in the MOU was also formed and series of meetings were also held. He added that as per the MOU, if an amount was disputed, it was agreed that the disputed and unreconciled amount would be referred to an Accounting Committee.

Shah said that in disregard of the laid down procedures, FBR on its own, determined a net amount of Rs31.978 billion, payable by SRB by rejecting SRB's valid claim of Rs42.5 billion against different heads.

FBR's biased and arbitrary move has created disharmony and distrust between the Centre and Sindh, which will affect the harmonisation process of taxation and number of allied steps being taken under the umbrella of national tax council and NFC, the CM said.

It is noteworthy that on similar account, the federal government has dispensed approximately Rs40 billion to two PTI ruled provinces without any deductions, the chief minister lamented.

Water and Gas

The CM said that under the 1991 Water Accord, the provinces have to share water surpluses as well as shortages in accordance with the formula agreed on, but during the ongoing shortages, rabi and kharif seasons, Sindh has been deprived of its due share.

The chief minister said Constitution guaranteed that people of the province from where the gas was produced had first right to the resource, but the federal government has denied this right to the people of Sindh.

He added that recently, the Sui Southern Gas Company (SSGC) slashed gas supply to Sindh y 15 per cent Murad said the province has filed a legal suit against this deduction.

Long March

The chief minister told the media representatives that PPP Chairman Bilawal Bhutto Zardari has become voice of the poor people of Pakistan. He was leading a long march against economic failure of the federal government which has deprive [poor] people of square meals.

Shah said that on February 27 Bilawal Bhutto Zaradi would lead a long march to highlight the issue of poor people. He added that his party would share the route of the march with media.

Rotation policy

The chief minister said that the federal government has imposed unilateral transfer, posting rotation policy of the federal government officers working in the province. He added that under the policy they have transferred officers from Sindh and forcing them to relinquish the charge and join their new place of posting. Under the law the officers could not relinquish the charge until and unless the provincial government did not relieve them of their duties.

The CM said that his government was already facing shortage of officers and if the officers posted here [in Sindh] were relieved there would be a crisis-like situation in the provincial administration. Therefore, he had not relieved the officers, therefore the federal government has started retiring them forcibly.

Published in The Express Tribune, February 19^th, 2022.