Punjab Finance Bill-2005, tabled during the Punjab Assembly Budget Session on Thursday, proposed abolition of sales tax on beauty parlours and clinics, slimming clinics, laundries and dry cleaners, and marriage halls & lawns in the province. While tabling the Punjab Finance Bill 2005, Punjab Finance Minister Sardar Husnain Dreshak said the government intends to encourage and promote the small and medium enterprises (SMEs) without the encumbrance of sales tax.

Hence it has been decided to abolish the levy of sale tax on the services provided by the beauty parlours and clinics, slimming clinics, laundries and dry cleaners and marriage halls and lawns. In this connection, Punjab Sale Tax Ordinance 2000 would be amended.

Talking to newsmen, Punjab Finance Secretary Salman Saddique said that abolition of sales tax on the above-mentioned service providers would cost the treasury Rs 11.3 million, while the proposed increase in salaries would cost Rs 8.1 billion.

"We have managed to attain a surplus budget, which was the outcome of tight control on government expenditures," he added.

Copyright Business Recorder, 2005