ISLAMABAD, June 30: The government has withdrawn the facility of zero rating of sales tax on three items and exempted pharmaceutical raw materials from the levy of sales tax. The decisions were announced through three different sales tax notifications issued here on Thursday.

According to the sales tax notification SRO647, the government has withdrawn the budgetary facility of zero rating of sales tax from caustic soda both solid and in aqueous solution, soda ash and detergents.

Through another notification SRO645, the government exempted raw materials, if imported by or supplied to the recognized manufacturers of pharmaceutical products or pharmaceutical active ingredients for use in the manufacture of substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976), from the whole of sales tax leviable thereon. This notification would come into effect retrospectively from June 6, 2005.

The government through notification SRO646 allowed M/s BOC Pakistan Ltd, West Wharf Road, Karachi zero per cent of sales tax on supply of three gases —hydrogen, nitrogen and helium — to M/s Pakistan PTA Limited, Port Qasim, Karachi.