KARACHI - Rejecting the proposed move of PML-N’s federal government to snatch the Sales Tax on Services, the Sindh Assembly on Monday adopted a resolution, terming the move unconstitutional as GST on services is a provincial subject.
Through passing a resolution, the House recommended the Sindh government to approach the federal government to withdraw the amendment proposed in the Finance Bill to amend the definition of the sales tax on services.
The Sales Tax on Services is a provincial subject as per constitution of the Pakistan 1973, which was further clarified in the 18th amendment. The Sindh Assembly while adopting resolution declared and resolved that imposition of Federal Excise Duty on Financial Services as proposed in the Federal Finance Bill is unconstitutional and should be withdrawn immediately.
Moved by the PPP’s MPA Jam Khan Shoro and also signed by Senior Education Minister Nisar Ahmed Khuhro, Dr Sikanadar Shoro, Fayyaz Butt and Imdad Ali Pitafi, the resolution was adopted by the House with majority vote as only one member Irfanullah Marwat of PML-N voiced in no during voting on resolution.
Law Minister Dr Sikandar Mandhro said that the proposed amendment in the finance bill by PML-N government was grabbing of provincial autonomy as well as against the constitution of Pakistan.
The provincial law minister informed the House that it would be huge financial loss of the Sindh province, if proposed amendment was adopted by the federal government through finance bill.
The PPP as well as MQM, PML-F, PTI and other majority members of the PML-N from opposition benches voiced in support of resolution, only one member Irfanullah Marwat of PML-N stood and voiced in no against the resolution.
Marwat of PML-N said that the treasury benches brought the resolution urgently and didn’t give it to the opposition for study, so he opposed it.
Senior Minister Nisar Khuhro said that PML-N’s federal government was playing with the provincial autonomy while Sindh government is trying to save the rights of the province.
MQM’s parliamentary leader Syed Sardar Ahmed said GST on services was only a provincial subject and provinces had right to collect it as federal government had no right to snatch it by changing the definition or name of this tax.
Later, the House started discussion on the annual budget of Sindh for next fiscal 2013-14.