KARACHI - Despite resistance from Federal Government, the Provincial Government of Sindh has taken a decision to pass bill for collection of GST on services from next financial year 2011-12. Sources in provincial finance department told The Nation on Wednesday that federal government still resisting to devolve the provincial tax and to keep continue the existing mechanism for collection of GST on services through FBR. But provincial government in principal took a decision to make legislation in this regard in forthcoming pre-budget session of Sindh Assembly which to be started tomorrow (Friday) June 03, 2011. A senior official said that a bill would be passed from Sindh Assembly or ordinance to be promulgated before announcement of annual budget of Sindh for next fiscal year, which to allow the provincial government for collection of GST on services. The proposed legislation would enable the provincial government to collect the GST on services for number of services including telecommunication services, shipping, hotels, restaurants and other professions. However, sources said that federal government opposed the Sindh governments stance of collection of GST on services on Karachi port trust, insisting that earning of services of port must go to all the provinces equally. Resisting the Islamabads move, the Sindh government opined that Karachi Port Trust located in the geographical limits of Sindh province, so the revenue through GST on port services must go in the kitty of the Sindh province. A senior official told The Nation that Sindh contributes major share in the revenue being earned by country through services including 94.27 per cent in courier services, 81.36 per cent Custom agents services and Sindh contributes 99.89 per cent in services of shipping agents. However, two sides, Sindh and federal government, were stuck on their position, which may lead continuation of existing system of GST on services in next financial year too. Finance Department sources informed that provincial government has decided to enhance the limit of the GST on services in phases. However, it has been planned to impose GST on services on security agencies, training institutes, big clinics and other services being provided by professionals in province in next budget. Finance Department sources said that presently at least 250 services are out of GST on services, so provincial government made a strategy to levy GST on new services in every financial year, through which province can collect the revenue of Rs50 billion annually. Meanwhile, sources said that Sindh planned to pass Agriculture Income Tax amendment bill in pre-budget session of Sindh Assembly. Workers welfare fund and other bills would also be tabled in upcoming session of assembly. Besides, sources said that federal government has reduced the share of Sindh province in the Federal PSDP, besides the Central Government dropped the 74 ongoing uplift schemes of Sindh province from the PSDP of next fiscal year. According to sources, out of Rs280 billion proposed for provinces in next fiscal year, the federal government has allocated only Rs26.32 billion for uplift schemes of Sindh, which stood 9.4 per cent of total PSDP. Sources said that Sindhs share in federal PSDP had been decreased during three year rule of present PPP government.