ISLAMABAD, June 22: The budget for the fiscal year 2007-08 passed by the National Assembly on Friday carried slight changes in the sales tax, customs and income tax introduced through the Finance Bill 2007.

The changes were made following the 12 days of discussions in the parliament on the budget presented by State Minister for Finance Omar Ayub Khan on June 9.

No major change in the rates or taxation measures has been taken except minor changes in the revision of duty and taxes, rates for certain industries and improving of language and editorial changes in the taxation acts.

The major change made in the sales tax is the introduction of three slabs for the retail sectors—retailers, whose turnover is less than Rs5 million will be exempted from sales tax.

The rate of sale tax will be 0.5 per cent for those retailers, whose turnover will be above Rs5 million, while in case of turnover of more than Rs10 million, the rate of sales tax will be 0.75 per cent.

When contacted Member Sales Mussarat Jabeen told Dawn that for iron and steel sector the scheme will be announced in the next couple of days. She said that after consultation with all stakeholders, the rate of sales tax will be finalised.

A senior official in the customs department said that no prominent changes were made in the Customs Act. However, he said it had been decided to refund the amount of special surcharge collected from importers during the period of June 10 to 20.

No surcharge will be collected on those goods declaration forms, which were filed with the customs collectorates irrespective of the dates. Duty rates have been revised on some raw materials of the chemical industries, while computer monitor will enjoy the zero customs duty. The special excise duty on imported and local manufactured products would be collected from July 1, 2007.

Among the prominent changes 401 items have been made zero rated under the Customs Act. All people could now enjoy the major facility of import these raw materials for manufacturing of goods.

The rate of duty on tinplate has been reduced from 25 per cent to 20 per cent--primary 10 per cent and secondary 20 per cent at the persistent demand of the vegetable ghee industries.

Interestingly, Member Income Tax Salman Nabi left for Egypt to negotiate a double taxation treaty before the approval of the budgetary proposals by the parliament.

Osman Mirza Khalid, another senior income tax officer looking after the affairs in the absence of Mr Nabi, when contacted, refused to share the amendments made in the Income Tax Ordinance through the Finance Act 2007.