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According to a release on Saturday he also appreciated the decision of the Government to reduce the sale tax rate to 16 percent from 17 percent and introduce flat rate of 5 percent GST on purchases of unregistered persons of the five export sectors.

Ijaz Khan said that the reduction of Withholding Tax on cash withdrawal to 0.2 percent from 0.3 percent is also a positive measure in the Federal Budget for new fiscal year 2011-12.

He, however, said that the increase in 1 percent VAT on commercial importers will increase the cost of raw materials of exporters as many exporters purchase their raw materials from commercial importers.

He said that overall no measure has been taken in the budged to boost the exports of the country and owing to low investment and low growth in the economy the target of tax collection may not be achieved.