WEB DESK: The government is expected to impose in budget (2016-17) a 10 percent sales tax on the import of newsprint, increase sales tax from 5 to 10 percent on the ingredients of poultry feed and enhance sales tax from 10 to 17 percent on the import of plant and machinery not manufactured locally.
Sources told Business Recorder the budget makers reviewed the sales tax and federal excise proposals of the Federal Board of Revenue (FBR) for 2016-17 on Wednesday at the FBR House.
A meeting that lasted several hours at the FBR House reviewed the aspects of sales tax and FED proposals on different sectors. The final decision of taxation of beverages and dairy sector would be taken in follow-up budget finalisation meetings.
Under the taxation measures proposed for 2016-17, the Federal Excise Duty on cement has been proposed to be raised from 5 to 10 percent in coming budget (2016-17). The FED on cement has been proposed to be doubled on cement from 2016-17.
It has also been proposed to raise sales tax from 10 to 17 percent on complete plants for relocated industries in the upcoming budget (2016-17). Under SRO1125 for five leading export-oriented industries ie textile, leather, carpets, surgical and sports goods, the government is expected to raise sales tax from 3 to 5 percent on input/raw materials goods including yarn and fabrics and enhance sales tax from 5 to 10 percent on the local finished goods.
The government is also expected to withdraw sales tax zero-rating on stationery items and their inputs/raw materials under Fifth Schedule of the Sales Tax Act, 1990. It has been proposed that in case of soya bean meal, sales tax would be increased from 10 to 17 percent; on rapeseed, sunflower seed and canola seed from 16 to 17 percent and sales tax would be increased on soya bean seed from 6 to 17 percent.
The government is also planning to impose a 10 percent sales tax on goods specified under Table-1 of the Sixth Schedule of the Sales Tax Act, 1990. The exempted items covered branded, trademarked, Items sold in retail packing under (Exemption Schedule) of the Sales Tax Act, 1990.
Sales tax may be imposed on the import and local supply of meat of bovine animals, sheep and goat, excluding poultry and offal, whether or not fresh, frozen or otherwise preserved.
Sales tax has been proposed to be imposed on fish and crustaceans excluding live fish whether or not fresh, frozen or otherwise preserved and fish and crustaceans excluding live fish whether or not fresh, frozen or otherwise preserved.
Sales tax would be imposed on the import and local supply of frozen prepared or preserved sausages and similar products of poultry meat or meat offal; meat and similar products of prepared frozen or preserved meat or meat offal of all types including poultry, meat and fish and sales tax would be imposed on the import and supply of uncooked poultry meat.
Another proposal under consideration is to increase sales tax from 10 to 17 percent on the dairy products other than milk sold in retail packing under brand name such as Flavoured milk, Yogurt, Cheese, Butter, Cream, Desi Ghee, Whey, Milk and Cream concentrated and added sugar or other sweetening stuff.-Business Recorder