May 17, 2006	Wednesday	Rabi-us-Sani 18, 1427

ISLAMABAD, May 16: The commerce ministry is working on a proposal to identify more export-oriented industries for zero rating of sales tax from the next budget. An official told Dawn on Tuesday that the ministry was collecting information from different quarters to identify potential sectors for the scheme.

The government had zero rated five major industries last year — textile, carpets, leather, sports and surgical goods — on the pretext that delay in refunds payments of sales tax was a source of anxiety for the exporters.

To include more industries in the list, the ministry had outsourced some studies on specific sectors to identify the export potential in them and to suggest rationalisation of duty and taxes.

The official said that proposals had been received to consider footwear, fisheries products, gem and jewellery etc., for the zero rated scheme.

The ministry had also proposed to CBR to rationalise customs duties on the raw materials used in the zero rated sectors.

The official said that the first meeting of the commerce ministry with the senior tax officials would be held on Thursday to discuss these and other proposals for consideration in the upcoming budget.

According to the official, the zero rated scheme had two apparent benefits for the industries — the refund payments would be reduced considerably and secondly there would be an improvement in the liquidity position of these sectors.