KARACHI: Officials from the Federal Board of Revenue (FBR) and Sindh's Excise Department will meet today in a bid to sort out the ongoing tax collection dispute between the provincial government and the Centre.
On Wednesday, Sindh had announced to officially halt tax collections for the federal government, a day after Chief Minister Murad Ali Shah had said that the province had conveyed the message to the concerned authorities in this regard.
Sindh Minister for Excise and Taxation Mukesh Chawla said that the provincial government has stopped collecting withholding tax under a decision taken by the provincial cabinet.
"FBR officials have contacted us [in this regard], we stand by our position," he said.
Chawla had earlier said that the federal government "should now make the mechanism for collecting the withholding tax by itself".
A day before yesterday, CM Shah had announced that the provincial government would not collect advance income tax on behalf of the federal government.
The chief minister had maintained that his government had been compelled to take such a decision after the federal government unilaterally took an adverse decision regarding the levy of the income tax.