ISLAMABAD, June 7: The government has proposed to levy 15 per cent sales tax on printed retail price of 10 consumer items, 3 per cent at retail stage of five major sectors and to withdraw levy of sales tax on six provincial services sector.

Through various sales tax notifications 2005-06 issued here on Tuesday, government proposed to levy sales tax on printed retail price of soap, detergent, perfumery and cosmetics, shaving cream, toothpaste, shampoos, tea, milky drink and powder drink, biscuits and confectionary. The tax would be collected at manufacturing stage.

The levy of single stage sales tax at the rate of 3 per cent on retail sale of textile fabrics, garments, leather, carpets, surgical goods and sports goods has been proposed.

It has been proposed to withdraw 15 per cent sales tax under the Provincial Sales Tax Ordinance, 2000 on services provided/rendered by beauty parlours/clinics, slimming clinics, laundries & drycleaners and marriage halls/lawns.

Through the bill, the government has proposed to exempt from sales tax essential medical and orthopaedics equipments including ‘dextrose & saline infusion giving sets’, ‘artificial parts of the body’, ‘glucose testing equipment’, intra-ocular lens (IOL), adult diapers and sheets etc.

The government extended zero rate of sales tax to the parts of capital goods; offer another amnesty scheme granting waiver of additional tax and penalty in case the defaulting taxpayers deposit the principal amount of sales tax within such date as may be prescribed by the government.

It has also been proposed to zero-rate the locally extracted soyabean meal which will help the local industry recover steadily; to grant sales tax exemption on the import and supply of CNG Euro-2 buses, whether in CBU or CKD condition.

Through the bill, the government has proposed to exempt foodstuff supplied by flight kitchens on domestic flights from GST. In order to extend comparable treatment to all imports of capital goods, it has been proposed to do away with the requirement of furnishing installation-cum-production certificate in respect of the imports made in the past under SRO 987(I)/99 dated 30.08.1999 and the condition of printing retail price on the imported goods may be abolished.