January 15, 2006	Sunday	Zilhaj 14, 1426

ISLAMABAD, Jan 14: The Central Board of Revenue (CBR) has asked the customs collectorates to collect Re1 per kg as Federal Excise Duty (FED) at import stage on edible oil including crude oil and vegetable ghee and cooking oil.

An official announcement of the CBR issued here on Saturday said that for the aforesaid items, the customs collectorates would collect the FED from commercial as well as industrial importers in lieu of duty payable on value addition at local manufacturing stage.

The decision would result in raising maximum revenue under the head of sales tax as it would not be adjustable and would help in documentation of the sector.

The CBR had notified the decision through a federal excise notification SRO24 of 2006 in supersession of its earlier notification SRO1299 of 2005 issued on December 31, 2005.

It was clarified that this duty was payable in addition to FED charged at the rate of 15 per cent already leviable under the First Schedule to the Federal Excise Act, 2005.

However, this federal excise duty of Re1 per kg collected at import stage shall be accounted for in its own separate head of 02300200 and deposited at the time of filing of goods declaration for home consumption.

After the levy of the FED at the rate of Re1 per kg at import stage on the mentioned items, the payment of sales tax on upfront value addition of 10 per cent on imports of these items made by commercial importers under the Sales Tax Special Procedure Rules, 2005 as notified through SRO522 of 2005 has been done away with.

As a result of the SRO24 of 2006, the liability of federal excise duty on edible oil and ghee/cooking oil shall be discharged at import stage and there will be no subsequent adjustment of input tax.

This decision has been notified by notification SRO25 of 2006 issued here on Saturday by amending the SRO488 of June 12, 2004 has been amended.

According to the SRO24, the Re1 will be charged on edible oils excluding item falling under heading 15.18 in the first schedule to the customs act. The duty will be applicable to headings — 15.07 to 15.16; 20.10; 1516.2020; 15.17; 15.18. While the Re1 will be charged on vegetable ghee and cooking oil of their respective headings.