Sindh seeks restoration of excise duty on oil production

KARACHI: Sindh government has decided to again ask the centre to restore excise duty on crude oil production, which was revoked following the 18th amendment into the constitution, as well as to relegate the rights of sales tax on goods collection to the province, a senator said on Tuesday. 

Saleem Mandviwalla, non-statutory member of the National Finance Commission (NFC) from Sindh, said the province would seek the restoration of excise duty on crude oil in the upcoming NFC meeting.  The provincial government had been lodging protests against the withdrawal of excise duty on crude oil production for years. 

“After the 18th amendment, it (the duty) is a provincial subject and its collection should be handed over to the provinces,” Mandviwalla said in a statement. Currently, the federal government is already collecting excise duty on the gas well head price.

Senator Mandviwalla said the province will also demand the rights of collection of sales tax on goods from the federal government. “Royalty on oil and gas should also be handed over to the provinces.”

He also criticised the government on stopping the new NFC award. “The federal government has been delaying it for the last four years. It should call the meeting without any further delay,” he said.

Mandviwalla said the federal government announced to call the NFC meeting in the last week of November, but the provincial government has not yet received its invitation. “We are waiting for the meeting and have prepared our all demands.”

Senator Mandviwalla said the province would also write a letter to the Prime Minister to immediately convene a meeting of NFC award. He hoped that the federal government will announce the date of NFC meeting and it will be held within this month.