KARACHI - To broaden the tax net with an aim to curbing the practices of tax evasion, the Federal Government has been advised to impose 3 per cent General Sales Tax on five leading zero-rated export sectors under RGST mechanism instead of putting 15 per cent levy on the export and local supply of such items, The Nation leant. There is no need to withdraw zero-rated facility on five export oriented sectors including textile, leather, carpet, surgical and sports goods, but be rated at 3 per cent at the early stage of RGST introduction. The tax rate, however, could be increased by some percentage points over some period of time in a phased manner, said Majeed Aziz, a renowned industrialist and former Chairman Karachi Chamber of Commerce & Industry. He further said through implementing this rate, the Government could easily maintain trade-off between revenue generation and tax evasion situation. Similarly, the suggested tax rate would be highly justified for the Government as well as for the business community to charge and pay because it would bring exporters and traders into tax bracket and to pave the way for the documentation of countrys economy. It would also create a risk-aversion refund system by bringing more transparency in the turnover of the exporters and traders. Besides, it would close the doors to corruption and irregularities by traders and the tax officials while auditing taxable income. In short, the purpose of tax collectors and the taxpayers could be achieved respectively through imposing 3 per cent tax rate on zero-rated sectors in a very effective way, he added. It may be pointed out here that the traders community has expressed its dismay over the planned imposition of RGST, condemning the decision to withdraw zero-rated status of five exports sectors as it would result into massive corruption and exporters would be facing acute financial crunch due to blockage of their capital. The showed serious concern over the non-payment of Rs80 billion refund to the exporters for the last two and half years by the Government. They asked the Government how they would pay RGST claims in hundreds of rupees after removal of zero-rated status of exports.