ISLAMABAD - Reduce sales tax on local manufactured products and eliminate tariff on imported capital goods. This would promote industrialization and create new jobs in the country. Or so the Federation of Pakistani Chambers of Commerce and Industry (FPCCI) proposes for the up-coming budget. Sources from FPCCI said that it was recommended that sales tax on locally manufactured products be charged at the rate of 10percent instead of 15percent. In view of growth in economy and increase in raw material prices, total sales tax revenue will still be higher than current level i.e Rs 375 billion, they said. Custom duty on imported capital goods be allowed at zero duty instead of 5percent. And in order to meet export targets and increase the competitiveness of Pakistani products in international market, imported chemicals and dyes be charged with maximum of 5percent custom duty, FPCCI proposed. They also suggested not custom duty 5percent on spare parts for textile machinery of all kinds, instead of the present 5 percent. It will reduce cost of production of textile sector and industry might be able to compete in the international market, they added. Textile sector is the major source of revenue of Pakistan and now is at drowning stage due to high prices of inputs, they further said. Pakistan is an agricultural country and rising prices of fertilizer are cutting down the margin of farmers. Conversely, the insufficient use of fertilizer is leading to the decline of agricultural production in the country. Keeping this in view, FPCCI proposes to eliminate sales from sulphur, which is the basic raw material to manufacture sulphuric acid, which in turn, is mainly used by fertilizer and steel industry. Pakistan is short of energy and the country might be able to save a lot of energy by using energy saver bulbs. In this context, FPCCI suggests abolishing sales tax on energy saver lights to make them affordable for common man, sources from FPCCI maintained. FPCCI office holders said that some of their proposals may affect revenue collection slightly. Their suggestion to stretch the limit of taxable income to Rs 300,000 instead of Rs 150,000 per annum could affect revenue but would make poor people's lives better. Some other proposals regarding duties and indirect taxes might affect revenue but that would start an era of industrialization and production activities in short time, they maintained. In Pakistan, it is seen that the poor is pay tax and that tax is used for the betterment of wealthier classes. This scenario must be reversed and government should explore areas of revenue collection other than those that fleece the poor, an office holder in FPCCI said, pointing at the suggestion of increasing limit of taxable income. Sources said that it is proposed to tax the income derived from stock market, which have been booming in last 7 years but without sharing due tax responsibility. Similarly it is suggested to tax all transactions of property at their actual value instead of declared untrue values. This should exclude apartment up to 1500 sq feet and plots within 240 sq yards. Provided government considers this suggestion, it will help stabilizing property prices as well, which are going sky high at present, they maintained.