ISLAMABAD, March 21: The government is likely to levy 15 per cent general sales tax (GST) in phases on edible oils, vegetable ghee, tractors, some agricultural inputs and information technology related products.

These items were placed under the sixth schedule of the sales tax act remained exempted from the sales tax so far, chairman of CBR, Riaz Ahmed Malik, told a news conference on Thursday.

He did not mention the exact time of levy, however, he said that all these and other items enjoying tax exemptions would be finally brought under the tax net shortly.

This exercise is the part of the IMF conditionalities for getting the next tranche of poverty reduction and growth facility (PRGF).

Mr Malik said that the revenue to be generated from the levy would be around Rs8 billions.

The chairman of CBR said that he hoped that the thrice revised target of Rs414bn would be achieved.

During the month of February, the revenue receipts have declined by 21.11 per cent to Rs27.61bn against the target of Rs35bn set for the same month.

The shortfall occurred during the month would be bridged in the next months with the revenue to be generated by levying of sales tax on urea at actual price and on all medicines as well.

Mr Malik attributed the shortfall to fall out of Sept 11 incidents, reduction in the value of dutiable imports in the aftermath of US led attack on Afghanistan and depreciation of rupee against dollar, respectively.

He further said that the country’s exports were also likely to fall short of target by 12 to 14 per cent.