ISLAMABAD, June 3: The government is likely to abolish central excise duty (CED) on fibre optic from the next financial year.

Well-placed sources told Dawn on Monday that decision to this effect was likely to be announced in the budget 2002-03.

The government had levied CED on the same some years ago, but no tangible revenue was raised from this product.

Keeping this in view, sources said, the government was considering withdrawing duty on it in the budget.

It is worth mentioning that there was no significant import of fibre optic and only a manufacturing unit in Pakistan produced it for both defence and telecommunication sectors.

The government is also likely to abolish CED on polyester filament yarn, polyester chips, travel agent, shipping agent and advertising agent from the next financial year.

The government had withdrawn CED on 16 imported items in the budget 2000-01, whereas CED on 11 services had already been converted into sales tax during the same budget.

Sources said that as a matter of policy, every year CED was being converted into sales tax or abolished.