The NBR will also bring 65 more goods, services and organisations under its value added tax (VAT) net. But 200 items including raw materials, life saving drugs and essentials may be kept out of VAT net at import and production stages.

The NBR already has prepared a draft SRO (Statutory Regulatory Order) to recast the tariff structure, and it will be announced next month after the proposed budget is finalised.

To get the facility of five percent duty in importing machinery, importers will have to export at least 80 percent of the items produced with these machinery within three years.

If anyone fails to export goods within the deadline after importing machinery with at lower duty, he or she will have to pay additional 10 percent taxes with the total applicable taxes.

The items that may be exempted from VAT at import level include rock lobster and sea craw fish, shrimps and prawn live fry, maize seeds, barley, cane and beet sugar, rock phosphate and sulphur, LP gas, petroleum bitumen in both bulk and drum, drugs including that for malaria, cancer and life saving antibiotics, waste cotton, fistula needles and artificial joints.

Potato seeds, wheat seeds, animal feed, vegetable materials, methionine, chemical fertiliser, sheath contraceptives, pickled, wet blue and crake leather, sprayer used in farming, power tiller, computer related equipment, software and modem may get relief from duty at import and production level.

The finance adviser in his budget speech mentioned only 20 items that are to be exempted from earlier turnover tax and put under VAT net. But according to the NBR's draft SRO, the VAT net will cover 65 new items and heads.

These include mineral water, hotel and restaurant, cigarettes and biri, toilet soap, decorator and caterer, garage and workshop of motor vehicles, dockyard, construction firm, warehouse, port, advertising agency, press, auction house, land developer, building construction firm, telephone, teleprinter, telex, fax or internet organisation, SIM card distributor, freight forwarder, clearing and forwarding house, community centre, film studio, survey institution, cinema hall, film maker, furniture shop, Wasa, goldsmith and silver jewellery maker, insurance agency, courier and express mail service, medical centre, pathology laboratory, beauty parlour, consultancy and supervisory firm, lease agency, audit and accounting firm, shipping agents, air conditioned bus, train and launch services and suppliers.