Leading Issues in the Economy of Pakistan: Agenda for Reforms However, the consequence is that there is a substantial overstatement of the total revenue impact of Rs 350 billion. It could be less by over Rs 150 billion. The question is, will the IMF be able to identify this gap and ask for more reforms in the sale tax regime or elsewhere? Table 6.2: Major Items Retained in the 8 th Schedule (Items Excluded from the Original List Submitted by FBR to the MOF) Section Rate Description Revenue (Rs in Billion) 5 5 Raw and Ginned Cotton 1.8 22 8.5 Soya bean Seed on Import 11.0 23 5.0 Second hand clothing 3.4 25 5.0 Agricultural Tractors 2.1 43 5.0 Natural Gas supplied to Fertilizer plants 4.4 44 5.0 Phosphoric Acid 6.5 51 12.0 LNG/LPG 19.7 52 2.0 Fertilizer 87.0 57 10.0 Rock Phosphate 0.3 58 10.0 LPG 3.4 60 10.0 Fat-filled Milk 3.7 65 10.0 Ginned Cotton 12.8 67 5.0 LNG 2.3 TOTAL 159.4 The major items which will be subject to the standard rate following the passage of the Bill are shown in Table 6.3. The long list of items in Table 6.3 on which the standard rate will be applied following passage of the bill will have a negative impact on crop agriculture, livestock, fishing, steel industry, automobiles(above 850cc) sales, nutrition for infants, medicines, personal computers, etc. Private investment, especially in agriculture and renewable energy will also be discouraged. The sales tax on retail outlets will go up from 10 percent to 12 percent. Needless to say, the negative impact would have been much larger if items in Table 6.2 had also been excluded from the Eighth Schedule. 78