KARACHI: The federal government has proposed to increase incidence of sales tax on various imports and sectors which would help it overcome declining revenue.
Steel sector is currently paying sales tax on the basis of consumption of electricity at the rate of Rs9.0 per unit of electricity. The existing rate of Rs 9.0 per unit of electricity is proposed to be enhanced to Rs10.5 and corresponding increase shall be made in ship breaking and other allied industry.
And to promote the ease of doing business the issues pertaining to steel industry shall be resolved in consultation with the industry. Retail sales of five export oriented sectors are chargeable to sales tax at 5.0 percent. It is proposed to increase the said rate to 6.0 percent.
Commercial import of fabrics is zero-rated under SRO 1125(I)/2011. It is proposed to levy sales tax at 6.0 percent on commercial import of fabrics. Minimum sales tax of Rs425 per metric tonne is proposed to be provided for locally produced coal.
