10 years past, FBR avoids payment to Sindh

Centre yet to pay Rs22bn FBR collected from entities in province

KARACHI:

Sindh Chief Minister Syed Murad Ali Shah has announced that Sindh has asked the Centre to pay its due share in taxes collected by the Federal Board of Revenue (FBR) from the entities in the province.

FBR has collected over Rs22 billion from approximately 500 Sindh-based industrial establishments during the tax periods from 2014 to 2021 but has not transferred these funds to the provincial government, said CM Murad Ali Shah chairing a meeting at the CM House on Friday.

"We will meet with the federal government to resolve various issues, including the release of pending funds and the recovery of the Sindh Workers Welfare Fund (SWWF) and the Sindh Workers Participation Fund (SWPPF)."

He said this while presiding over a Friday joint meeting of the Labour and Finance departments at the CM House.

 

Shah noted that the FBR has collected billions of rupees from trans-provincial entities such as OGDCL, PPL, SSGC, and the Engro group, yet has not transferred any funds to the Sindh government since 2016-2017, despite consistently collecting the Workers Welfare Fund (WWF) and Workers Participation Fund (WPPF) from industrial establishments throughout Pakistan, including Sindh.

It was pointed out that, following the passage of the 18th Constitutional Amendment, the power to collect the SWWF and SWPPF from industrial establishments - both intra-provincial and trans-provincial - rests exclusively with the provinces. The CM was informed that the WWF and WPPF collected from trans-provincial industrial establishments amount to Rs25.36 billion, which is currently under review by the Sindh High Court and being deposited in the court.

Shah stated that he would request the prime minister to resolve this issue and ensure that provinces, particularly Sindh, receive their rightful shares.

During a briefing, the CM was informed that the Workers Welfare Board is responsible for constructing flats and houses, as well as providing quality education free of charge to workers' children at Workers Model Schools and Colleges. The board also offers financial assistance for uniforms, shoes, books, and bags, amounting to Rs10,000 per child, along with a grant of Rs200,000 for the marriage of each worker's daughter, post-matric scholarships for workers' children, and financial aid to the legal heirs of deceased workers, amounting to Rs700,000 each.

The discussion also covered the devolution of assets and liabilities of the WWF and the Employees Old-Age Benefits Institution (EOBI) from the federal government. The chief minister expressed his intent to discuss this matter with the prime minister shortly.

The meeting was attended by provincial ministers Saeed Ghani, Zia Lanjar, Shahid Thahim, Mayor of Karachi Murtaza Wahab, Secretary of Finance Fayaz Jatoi, Secretary to the Chief Minister Raheem Shaikh, Secretary of Law Ali Ahmad Baloch, Secretary of Labour Rafiq Qureshi, and others.