ISLAMABAD, May 31: The government is considering a number of proposals including the scaling down of customs duty to zero per cent from five per cent and with it abolition of sales tax on agriculture machinery and raw materials. Offici als told Dawn on Tuesday these and other measures were likely to be announced in the budget for 2005-06.

The Ministry of Food, Agriculture and Livestock (Minfal) has proposed scaling down the current duty of 10 per cent to five per cent, five per cent to zero per cent on agriculture machinery and raw materials. The officials said that if the proposal was accepted by the budget makers, the levy of 15 per cent sales tax would be withdrawn. Under the law, items, which were liable to 5 per cent customs duty, could not be subjected to the sales tax at import stage, added the officials.

The Minfal proposed to the government to rationalize electricity quota and its cost for tubewell and give representation to growers in the rice board. It was proposed to do away with the condition of engineering development board approval for duty-free import of sprayers and nozzles. The condition had made import of these implements difficult for the farmers.

The Minfal also proposed to the budget makers to allow NTN holder farmers the facility of making bookings of new cars with local auto manufacturers.