The Sindh government is thinking that the Federal Board of Revenue (FBR) should be told that the provincial Motor Vehicle Registration Wing of the Excise & Taxation Department will no longer collect withholding tax on behalf of FBR, because it was unilaterally deducting huge funds from the provincial government’s accounts.
In this regard a meeting presided over by Sindh Chief Minister Syed Murad Ali Shah was told that the FBR seemed not serious to return over Rs 8 billion it had unconstitutionally deducted from the provincial government’s account.
The meeting was told that from 2012-13 to 2016-17, the FBR had unilaterally and unconstitutionally deducted over Rs 8054.5 million from the provincial consolidated fund account. The provincial government has been raising the issue of refunds at different forums, but the FBR seemed to be adamant to return the deduced money.
It was told that in 2012-13, the FBR created an incorrect demand and deducted Rs695.235 million from provincial account without waiting for reconciliation. An appeal was filed and the FBR appellate authority itself decided in favour of Sindh government but the amount has not yet been refunded.
In 2014-15, the FBR changed and enhanced the rates of Withholding Tax on vehicles without waiting for its recovery and arbitrarily deducted Rs86.3 million in advance which are still recoverable.
In 2015-16, the FBR created a demand on the basis of an incorrect news report that the Provincial Motor Vehicle Registration Wing has registered 1,473,714 vehicles between July 7, 2015 and April 30, 2016, though only 79858 vehicles were registered during the said period. The FBR without reconciliation the figures unjustifiably deducted Rs6,127.1 million.
In 2016-17, the FBR created yet another exaggerated demand on the pretext of recovering more and depositing less amount on account of Withholding Tax recovered from registered vehicles w.e.f May 1, 2016 to June 30, 2016 and without waiting for reconciling the amount unjustifiably took away RS294.89 million on June 14, 2017 by coercing the manager of the bank who was maintaining another account of Infrastructure Cess.
In 2016-17 the audit of Accountant General, Sindh for the year 2011-12 was conducted by the Auditor General Sindh during 2016-17 wherein it transpired that AG Sindh had failed to recover an amount of Rs76.87 million from vendors of Excise & Taxation Department. The audit observed that the FBR should recover the amount. Instead of recovering the amount from the Vendors, the FBR illegally deducted the said amount from Sindh government account. The chief minister was told that the appeals have been made in the related FBR forums but those appeals have repeatedly been remanded back without any decision and the matter was still pending.
The chief minister said that the Sindh government on behalf of the FBR was recovering Withholding Tax- means the Excise & taxation department was proving FBR its services against which huge amounts was being deducted /taken away from Sindh government account.
Shah proposed to suggest the FBR to set up its counters at Motor Vehicles Registration Wings and collect Withholding Tax on its own. “We are fed up with their attitude and may be not be able to provide them service anymore,” he said and directed Excise & Taxation Department to prepare a summary for the cabinet to discuss the matter and decide it for good. Meanwhile, Chief Minister Murad Ali Shah on Thursday chaired a session to discuss the issue of mining at historic Karoonjhar Hills in district Tharparkar of Sindh.
The chief minister directed concerned authorities to bring the survey reports, investors offers and regulatory laws before the cabinet. The session was briefed that the Karoonjhar Hills range stretches over 20,100 acres. The wildlife sanctuary spreads over 2,00,000 acres, forests 18,704 acres and 28 small dams spreading over 17,930 acres of land.
Karoonjhar Hills near Nagarparkar on the northern edge of the Rann of Kutch, consist of granite rocks, constitute the oldest rocks of the Earth’s crust and Chinese clay. The principal range, Karoonjhar, is approximately 19 km in length and attains a height of 305 meters. Smaller hills in the east, covered with sparse jungle and pasturage. The Sindh government had recently announced the decision to make a committee to review the matter and protect the area with proper demarcation in order to preserve the rich heritage, wildlife and culture of the site.
It is to be mentioned here that a division bench of Sindh High Court (SHC) Hyderabad circuit last year in November stayed excavation of granite and other minerals from Karoonjhar hills while issuing notices to the federal secretary of natural resources, secretary of forest and wildlife, Frontier Works Organisation (FWO), secretary of mines and minerals and different marble companies.
The bench ordered that respondents were jointly restrained from cutting mountain or removing any minerals from there. The court passed the order on a petition filed by Ghulam Mustafa Hingorjo, a resident of Tharparkar. The petitioner argued that respondents were involved in illegal cutting of Karoonjhar hills, and excavating and removing valuable minerals. He said the respondent officers were not taking action against such illegal activity.
Aslso, Murad Ali Shah has said that the protection of cultural, religious and archaeological heritage at Karunjhar Range was his first and top most priority before exploring the mining potential of different mineral, including granite, china clay, iron ore, fuller earth and gold. This he said on Thursday while presiding over a meeting of Mines & Mineral Department to discuss mining issues of Karunjhar Range, Tharparkar. The meeting was attended by Minister Mines & Mineral Shabir Bijarani, MPA Qasim Siraj Soomro, Chairman TDAP Arif Ahmed Khan, Principal Secretary to CM Sajid Jamal Abro, Secretary Mines & Mineral Zulfiqar Shah, DG Mines & Mineral Nawaz Sohu and others
The meeting was told that over 10 billion tons of granite deposits were available at Karoonjhar Range, apart from vast reserves of China Clay, Iron Ore, Fuller Earth and Gold deposits. At this the chief minister said that these huge deposits would bring prosperity in the province, particularly in the local area, if they are taped.
“But, before unlocking the reserves we will have to safeguard and protect the cultural, religious and archaeological heritage in the range,” he said.
Secretary Mines & Mineral Zulfikar Shah briefing the chair said that at Karunjhar Range area covers Dhingano Forest, Karunjhar Forest, Sadurus Forest, Karujhar Hills and Wild Life Sanctuary.
Wildlife sanctuary has been declared over an area of 200,000 acres, Creek/Wildlife 84090 acres, The Karunjhar Hill spreads over 21,100 acres, Forest area 18704 acres and there are 28 dam sites over 17930 acres and 20 archeological Sites over an area of 1601 acres.The protected area spreads over 49,186.46 acres and Mineral Lease Area 31,480.58 acres, of which 8128 acres falls in the protected area. The area leased out for minerals include 20364 acre for China Clay, 6241.73 acres granite, 4073.93 acres Fuller’s earth and 800 acres for Iron Ore.
The chief minister said that all the cultural, historical, religious and potential tourism sites have to be excluded and their sustainability has to be safeguarded. The forest land be excluded from the area in which granite or any other mineral mining is proposed to be allowed. He said that the license/permit for granite mining in Karunjhar area, if granted, may be made conditional with setting up of industry within the limits of Tharparkar district in order to ensure value addition, employment generation and positive social benefits of the activity. He also added that Corporate Social Responsibility (CSR) as has been made by SECMC would be an integral part of such permission, if and when granted.
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