FBR should withdraw from collection of FEDoS: Qaim writes to Gilani

Sindh Chief Minister Syed Qaim Ali Shah has written a letter to Prime Minister Syed Yousuf Raza Gilani requesting him to direct the Federal Board of Revenue to immediately withdraw from the collection of Federal Excise Duty on Services (FEDoS), reliable sources told Business Recorder on Wednesday.
With the passage of 18th Amendment, collection of FEDoS has become the right of provinces and the FBR has to withdraw itself from collection of FEDoS. The FBR has not issued any notification in this regard despite passage of over a month. Sindh Chief Minister Syed Qaim Ali Shah has finally sought Prime Minister Syed Yousuf Raza Gilani's intervention to resolve matter, sources added.
The letter was sent to Prime Minister Gilani a few days back, according to details available with Business Recorder. The letter stated that amendment to entry 49 of the Federal List introduced by 18th Amendment has re-asserted the jurisdiction of provinces in the levy and collection of Sales Tax on Services (SToS). This was further unanimously endorsed as item No 8 of the 7th NFC Award.
The letter says that the FBR has announced publicly about withdrawal from collection of FEDoS but it has not issued any notification as yet. The letter stated that laws enacted regarding provincial issues need to be given due consideration and honour by the Centre and collection of FEDoS by the FBR is contrary to the legislation of provinces. Prime Minster Gilani should intervene to resolve the matter and direct federal government/FBR to immediately withdraw from the collection of FEDoS to remove state of double taxation in violation of constitutional legal rights of provinces, the letter concluded.