The federal government has deferred imposition of sales tax on computers and hand-sets (laptops) at retail level till a report to be complied by a ministerial committee headed by the Minister for Information Technology and Telecommunication, official sources told Business Recorder.
The Central Board of Revenue (CBR) proposed in the federal budget that sales tax should be imposed on computers and handsets at retail level, but some of the cabinet members opposed it on the ground that the Computer Association was already staging protest against this proposal, the sources added.
"The federal Cabinet has decided to carry out a study by a three-member ministerial committee headed by the Minister for Information Technology and Telecommunication regarding taxation on computers and handsets," the sources added.
Though the CBR chairman snubbed the protesting members of the Computer Association before the budget, saying that pressure tactics like shutter down and protest was not the right way to demand any concession from the government, but he failed to defend his proposal before the federal cabinet when came under discussion, the sources said.
Earlier, the Computer Association had accused the CBR imposed sales tax on computer industry following pressure of the IMF. However, Member Sales Tax was not ready to accept the rationale behind the levy.