News
Thursday, June 02, 2011
CCI asks provinces to increase agri tax* Constitutes committee to decide uniform tax rate, mode of assessment and mode of collection
* Levy of 30 paisas per acre will be charged to make IRSA financially independent
By Sajid Chaudhry
ISLAMABAD: The Council of Common Interests (CCI), on Wednesday, constituted a committee of the federal and provincial governments to consider increasing agriculture tax with a uniform rate and decide mode of assessment and revenue collection within the shortest possible time.
Provinces were of the view that agriculture income tax was a provincial subject and should be left with them.
Prime Minister Yousaf Raza Gilani chaired the CCI meeting that had seven containments in its agenda.
For the purpose of harmonisation of agriculture income tax, the CCI decided to constitute a committee of the Centre and all provinces to develop a uniform approach and reconcile the policy in this regard. It was observed that agriculture income tax was already levied, but the system for its collection was to be improved that would help the provinces not only finance their development schemes but also improve the national tax to GDP ratio.
The council also agreed in principle to a proposal to streamline the revenues of the federal regulatory authorities like the OGRA, NEPRA, PEMRA, etc. It was proposed that the amount over and above the budgetary requirements collected by various regulatory authorities in the shape of licence fee, penalties and fines would be deposited to the Federal Consolidated Fund. Although the matter did not relate directly to the provinces, they would ultimately benefit from this proposal. The relevant legislations of these authorities would accordingly be amended.
In the wake of increased responsibilities of the Security and Exchange Commission of Pakistan (SECP), a draft amendment bill 2011 was presented before the CCI that was unanimously approved.
The council was informed that consultations on this account with all stakeholders in the public and private sectors had been continuing since last five years. It was decided that the bill would be presented before parliament for approval.
Regarding the devolution of the National Education Foundation (NEF) and National Commission for Human Development (NCHD), it was decided that the budget, including salaries of employees of both the organisations, until June 30 would be cleared by the federal government.
NCHD Chairperson Dr Nafeesa Shah would consult the provinces for further continuation of these entities.
Regarding the allocation of 200-cusec water annually for drinking purposes for Islamabad, it was decided that the Ministry of Water and Power would negotiate with the Sindh government on proportionate sharing of water according to water accord by all the provinces.
In order to make the Indus River System Authority (IRSA) financially independent and self-sustaining, it was proposed that a nominal levy of 30 paisa per acre feet at all the canal heads and half paisa per watt of electricity generated would be charged that would be shared by the provinces, WAPDA and Pakistan Atomic Energy Commission.
Courtesy www.dailytimes.com.pk