The government has decided to review the existing sales tax regimes for 5 zero rated sectors in the budget for next financial year 2014-15.
A senior officer of FBR told a private TV channel that it was decided in a meeting held under the finance minister two days back that new sales tax regime would be introduced in respect of 5 zero rated sectors including textile, leather, garments, surgical, sports goods and carpet.
He further said that sales tax under varied rates of zero, 2 percent, 5 percent and 17 percent was in force with regard to these five sectors and this state of affairs was giving rise to problems. This regime will now be changed and new sales tax regime will be introduced for these five sectors. Sales tax rules and laws would also be amended so that tax relief provided to tax oriented sectors is not misused. Check and balance system will also be put in place to curb the practice of filing illegal and wrong input, tax adjustment and fake and illegal sales tax.