ISLAMABAD, June 14: Fresh taxation of Rs30-40 billion is being envisaged in the new federal budget by imposing 15 per cent GST on vegetable ghee and cooking oil, increase of 5 per cent GST on a range of raw materials and levy of 5 per cent customs duty on some zero rated imported goods.

The tax authorities estimated to raise around Rs3 billion from the withdrawal of 55 income tax exemptions and reducing the taxable limit on national saving schemes during the next financial year.

Well-placed sources said that the government would have to raise the tax-to-GDP ratio from current 10.9 per cent to 14.4 per cent by 2003-04 as agreed with the IMF under PRGF programme.