ISLAMABAD, Sept 4: The government is considering withdrawal of 15 per cent sales tax (GST) on all computer equipments, said minister of state for finance Umar Ayub Khan.

The minister in a meeting with a delegation of Pakistan Computer Association (PCA) led by its president Munawar Iqbal here on Monday said that the prime minister would resolve the issue in a meeting to be held recently.

An official announcement issued after the meeting said that the minister informed the association that government was aware of the adverse effects of the GST on computer equipments, which was imposed in the federal budget for fiscal year 2006-07 and was considering various proposals to resolve the issue.

Mr Khan said that consultations with the Central Board of Revenue (CBR) were already being held and the relevant government departments were studying various aspects of the issue.

The minister assured the PCA delegation that he would discuss the issue with the CBR and adviser to the prime minister on Finance and would later brief the prime minister on all the facts of the matter.

Earlier, the PCA president Munawar Iqbal informed the minister about the problems being faced by the industry, especially after imposition of the GST in the current fiscal year.

He said that computer institutes and the students were the worst affected by the GST and the whole industry suffered huge losses due to this tax."The sale of the computer-related equipments has been dropped to 40 per cent, while the price of each instrument has increased up to 15 per cent," he added.