August 01, 2007	Wednesday	Rajab 16, 1428

ISLAMABAD, July 31: The Federal Board of Revenue (FBR) on Tuesday notified the levy of special excise duty on import and local supply of various goods.

According to Federal Excise Duty (FED) general order no 3 the special excise duty is chargeable on all items - whether or not chargeable to FED - mentioned in Pakistan Customs excluding only the items mentioned in the table contained in SRO655 of 2007.

The special excise duty is also chargeable on the items specified in SRO644 of 2007 — the items chargeable to sales tax at the rate of 17.5 per cent or 20 per cent.

In case of locally produced goods chargeable to FED on the basis of retail price, special excise shall be levied on the retail price excluding the amount of FED.

However in case of locally produced goods chargeable to FED on the basis of wholesale cash price, special excise duty shall be levied on the wholesale cash price excluding the amount of FED.

While in the case of locally produced goods not chargeable to FED, whether chargeable to sales tax on retail price basis or otherwise, special excise duty shall be levied on wholesale price and no separate records are required to be maintained for the purpose of special excise duty.

The record required to be maintained under Sales Tax Act, 1990 shall serve the purpose.

The sales tax-cum-federal excise return containing separate column for special excise duty is being notified separately; no separate invoices for special excise duty are required to be issued.

The invoice issued for sales tax purposes should mention the amount of special excise duty separately.

The special excise duty amount is not required to be printed on items chargeable to sales tax or FED on retail price basis and special excise duty only chargeable on one time basis either at import stage in case of imported goods or at production/manufacturing stage in case of locally produced goods with the provision for adjustment of special excise duty already paid at import or local stage.

Hence, special excise duty is not chargeable on wholesale, distribution or retail stage.