National Finance Commission reconstituted

ISLAMABAD: President Asif Ali Zardari on Saturday reconstituted the nine-member National Finance Commission (NFC) to finalise the much-awaited 6th NFC award.

Minister of State for Finance Hina Rabbani Khar has been dropped from the list of members of the newly reconstituted NFC as her appointment in the last NFC had sparked criticism from the smaller provinces.

According to a notification, the president reconstituted the NFC in pursuance of Article 160(1) of the constitution.

The commission will consist of the federal minister for finance as its chairman, Punjab Finance Minister Tanvir Ashraf Kaira, Sindh Chief Minister Qaim Ali Shah, NWFP Finance Minister Humayun Khan and Balochistan Finance Minister Mir Asim Kurd.

Abdul Ghafoor Mirza was nominated as a private member from Punjab, Kaiser Bengali from Sindh, Senator Haji Muhammad Adeel from NWFP and Gulfaraz Ahmad was nominated from Balochistan.

The commission will make recommendations on the sales tax on services (CE Mode), examine the question of rationalisation of payment of royalties on crude oil, and of a surcharge on natural gas collected by the federal government. The Finance Division will provide the Secretariat support to the Commission as per the Rules of Business 1973.

Share: The NFC would also finalise the share of the federal and provincial governments in federal tax revenue, a new mechanism for provincial borrowing from the federal government and interest payment with revised terms and conditions. The commission would facilitate the provinces to agree on a distribution mechanism for the royalty on crude oil production and surcharge on gas production.

According to official sources, Finance Adviser Shaukat Tareen is likely to be elected as the member of Senate on the seat left vacant after Senator Javed Leghari resigned from the House.

Tareen’s election to the Senate will elevate him to the status of federal minister and he will be able to chair the meetings of the seventh NFC award.

The government has already decided to finalised the new NFC award in consultation with all federating units before December 31.

Currently the portfolio of the federal minister for finance rests with Prime Minister Yousuf Raza Gilani, who owing to his hectic official schedule is unable to chair the meetings of the commission.

Source: dailytimes.com