Rs 16.065 billion net proceeds of GST on services transferred to provinces

The federal government has transferred to the provinces net proceeds of general sales tax (GST) on services of Rs 16.065 billion during the first half (2010-2011) including Rs 8.843 billion to Punjab, Rs 4.214 billion Sindh, Rs 2.222 billion Khyber Pakhtunkhwa (KPK) and Rs 0.782 billion of GST has been distributed to Balochistan.
Sources told Business Recorder here on Monday that under the interim formula of distribution of GST on services, provincial share in GST (central excise mode) is 95.3 percent and share of provincial GST on provincial services stood at 136.01 percent.
Details revealed that under Article-8 of the Presidential Order that notified the decisions of the National Finance Commission, it was accepted that Sales Tax on Services is a provincial subject under the Constitution and may be collected by the respective provinces, if they so desire. As the issue linked with Reformed GST, status quo for its collection has been maintained for the time being by taking the provinces onboard.
However, the entire proceeds are being transferred to provinces provisionally on the formula agreed in the Provincial Finance Secretaries meeting. According to the formula, Punjab's share on GST in central excise mode has been worked out at 53.9 percent and GST on provincial services at 60.39 percent Sindh share on GST in central excise mode has been calculated at 23.6 percent and GST on provincial services at 50 percent.
Khyber Pukhtunkhwa share on GST in central excise mode has been worked out at 13.5 percent and GST on provincial services at 15.62 percent and Balochistan share on GST in central excise mode has been worked out at 4.3 percent and GST on provincial services at 10 percent.
According to the details of the GST on services, federal government has transferred to the provinces net proceeds of GST on services of Rs 16.065 billion in first half including Rs.8.843 billion to Punjab, Rs.4.214 billion to Sindh, Rs.2.222 billion to KPK and Rs.0.782 billion to Balochistan. The province-wise data further revealed that Punjab received Rs 7.955 billion as GST on services in central excise (CE) mode from telecom and Rs 0.888 billion from GST on provincial services. Sindh received Rs.3.483 billion as GST on services in CE mode from telecom and Rs.0.735 billion from GST on provincial services. Khyber Pukhtunkhwa received Rs.1.992 billion as GST on services in CE mode from telecom and Rs 0.230 billion from GST on provincial services. Balochistan received Rs 0.635 billion as GST on services in CE mode from telecom and Rs 0.147 billion from GST on provincial services, data added.