19 October 2004	Tuesday	04 Ramazan 1425

ISLAMABAD, Oct 18: The Central Board of Revenue has reduced the minimum value addition to around three per cent from 10 per cent for the levy of sales tax on purchases of retailers of five sectors.

The minimum value addition for the retailers of five sectors were fixed through a sales tax notification issued on Monday by amending the retail tax rules notified through a budgetary notification of 2004.

The minimum value addition for motorcycle retailers was fixed at four per cent; three per cent for rubber tyre retailers; three per cent for electronic goods for domestic use (locally made); Rs600 per ton for mild steel products i.e. steel bars, etc; and three per cent for flat rolled products of chapter 72, including tin free steel.

The government had notified special procedure for payment of sales tax on value addition basis by retailers to provide a conducive and audit-free environment to the retailers, especially departmental stores to gradually harmonize their activities with the sales tax procedures.

With the reduction in minimum value addition for these sectors, it was expected that these retail sectors would have no hurdle in discharging their tax dues timely.