ISLAMABAD, May 29: The tax authorities are reportedly reluctant to comply with the recommendations of the IMF that more items be brought under the net of 15 per cent general sales tax (GST) from the next financial year.

Well-placed sources told Dawn on Saturday that the IMF has asked Islamabad to impose 15 per cent GST on bricks, cement blocks, computer hardware, software, specific machinery and real estate in the budget of 2004-05.

The IMF has also recommended imposition of GST on all services except for residential rent and health, education and financial services, once the administration of the current tax- base has been suitably stabilised.

The sources said that the tax officials had conveyed their concern to the IMF that the levy of GST on these items was not practicable, which they believed would cause harm to end consumers and adversely affect production of these items.

Elaborating further, the sources said that the tax officials have also told the IMF that bricks and cement blocks industry employed a number of people in rural areas and levy of GST on the sector would not only result in un-employment but also hamper construction activities in the country.

Rejecting the levy of GST on computer hardware and software, the sources said this would cause prices of these items to shoot up immediately, thereby undermining government efforts to promote information technology in the country.

The local manufacturers of computer parts have proposed to the government to levy customs duty on import of used computer parts.

The stakeholders asked the government to levy regulatory duty on the import of used computer parts, which they believed is causing harm to local industry.