ISLAMABAD, April 29: The Islamabad Chamber of Commerce and Industry (ICCI) has proposed to the government to slash the rate of general sales tax (GST) to 12.5 per cent in budget for 2005-06 from the current 15 per cent. President ICCI Tariq Sadiq made the chamber proposals besides other issues for the up-coming budget at the foundation stone laying ceremony of Exports Display Centre (EDC) here on Friday.

Mr Sadiq said that the income tax slabs should be revised downward to encourage more taxpayers to come under the tax net, which would increase to 1.5 million in the next few years.

The president urged the prime minister to bring agriculture sector into tax net as there was no justification to keep this vital sector exempted from the tax net, he added.

The State Bank circular No 29 expired two years ago following the revival of several sick industries. Afterwards, some industries falling sick, due to 9/11 incident have not been covered by the operation of this circular.

“We request that the SBP may be instructed to reopen the scope of circular No 29 and eligible industries be considered for financial support”, he said.

The business community of Islamabad urgently needs a dry port. The ICCI and Pakistan railway had already spent around Rs30 million on a dry port project which was yet to be operative.