ISLAMABAD, June 7: The government has introduced new Federal Excise Act 2005 and Federal Excise Rules 2005 and has withdrawn central excise duty on two products. Through various CED notifications 2005-06, the existing Central Excise Legislation has been replaced with new Federal Excise Act 2005 and Federal Excise Rules 2005, which have been drafted keeping in view the international best practices as well as in accordance with the present day requirements.
The new act and rules would come into effect from July 1, 2005.
Under the new act, it has been proposed that there will be no physical control; no separate registration will be required for those who are already registered with the sales tax department; and the duty will be paid by 7th of every month.
For removing anomaly, the government has proposed withdrawal of excise duty exemption on carbon black oil (HS code 2707.9910 and 2713.9010) and residue carbon oil (HS code 2713.9020).
It was proposed that greases falling under PCT heading 3403.1910 might also be subjected to excise duty, and excise duty on un-manufactured tobacco might be charged at a specific rate of Rs5 per kg.
Through the notifications, it has been proposed that excise duty may be levied on actual transaction value of payphone and prepaid calling cards, instead of the charges billed by PTCL. It has also been proposed that WLL (wireless local loop) operators may also be brought under the tax net and the services provided by them may be charged to excise duty at the rate of 15 per cent.
It was also proposed to readjust excise tariff on cigarette industry — upward revision of excise tariff duty to increase in retail price of cigarettes proposed by the cigarette manufacturers.
The government also proposes that the lower rate of 12pc in respect of carriage of goods by air may also be raised to 15pc.
It has been proposed that like other petroleum products, asphalt/bitumen and petroleum greases may also be charged to excise duty on specific basis and to reduce the statutory time limit of sales tax and excise record keeping to three years from five years. The government has also proposed to withdraw CED on soap and detergent.
