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Summary Provinces have expressed concern over collection of GST on services during NFC meeting.
Centre and provinces have failed to reach a consensus on General Sales Tax (GST) on services and agriculture income tax at the meeting of the National Finance Commission (NFC).The government of Punjab has expressed reservations over the collection of General Sales Tax (GST) Services and held the federal government responsible for its overdraft due to slow releases of funds.This was said by Punjab Finance Minister Kamran Maikal here while talking to media after attending a meeting of the Seventh National Finance Commission (NFC) held on Friday with Finance Minister Dr Abdul Hafeez Sheikh in chair and attended by all provincial finance ministers.Talking to media, Federal Finance Minister Dr.Abdul Hafeez Sheikh said that under the divisible pool‚ Rs 807 billion have been given to the provinces during previous financial year 2010-11 out of which Punjab has been given Rs 417.58 billion,Sindh 198.14 billion,Khyberpakhtunkhwa Rs118 billion and Balochistan has been given Rs73 billion.“Provinces have been given greater share in resources after the approval of 7th national finance award”, said Dr.Abdul Hafeez Shaik, adding that Rs65 billion have been set aside for current fiscal year 2011-12 for different poverty alleviation programmes.Dr.Abdul Hafeez Shaikh said that more resources are now available to the provinces under the new formula finalized in 7th National Finance Commission. He said that provinces are now getting 57.5 per cent while federal governments share reduced to 42.5 per cent. The Federal Minister said that current government is taking various steps to reduce poverty in the country and government allocated Rs65 billion for Benazir Income Support Programme (BISP) during current fiscal year.It may be mentioned here that President Asif Ali Zardari had reconstituted the NFC in August this year to work out the eighth award for distribution of resources among federal and provincial governments and its earlier meetings were scheduled on 16th and 21st November but then postponed to December 16.
