ISLAMABAD, June 22: The National Assembly on Sunday approved the Finance Bill envisaging a string of new taxation measures to mobilise more than Rs80 billion in revenue to meet rising expenditure and sustain a steady economic growth.

The tax machinery has been assigned an ambitious target of Rs1.25 trillion for the year despite current economic difficulties and a phase of slow growth. The revenue collection for 2007-8 is expected to reach Rs1 trillion against a projected target of Rs1.025 trillion.

No major amendments were introduced in the part of the budget speech pertaining to taxes during the past nine days of discussion in the National Assembly and Senate.

The major decisions include increasing the rate of general sales tax by one per cent to raise more than Rs26 billion, withdrawing 35 income tax exemptions, imposing additional duty on luxury items and revising the tax rates on property rent.

The Federal Board of Revenue (FBR) released the details of the amendments to the media after the approval of the Finance Bill. Of the 76 amendments proposed by the Senate, 51 have been accepted. The remaining proposals will be considered during the course of the year.

Major amendments made in the bill concerning sales tax and federal excise duty pertain to the definition of cottage industry. Those manufacturers shall fall within the purview of cottage industry, whose annual utility bill is below Rs700,000 and annual turnover is below Rs5 million.