ISLAMABAD, Oct 10: The Economic Coordination Committee of the cabinet on the recommendation of the ministry of industries and production decided to restore exemptions on central excise duty, sales tax and duty drawback on export of cement in its meeting held on Sept 27, 2006.

The ministry had based its recommendation on substantial increase in the production capacity of cement plants in the last six to eight months.

This capacity has increased from 21.12 million tons to 28.4 million tons per annum. While the production of cement in the first two months of the current financial year has shown a considerable increase of 18.74 per cent over the same period last year, yet the capacity utilisation was only 74 per cent.

The ministry was of the view that as “we now have ample cushion to increase production if the demand increases any further, it was time to encourage exports and protect the export market in Afghanistan”.

Accordingly it had recommended the restoration of exemptions of CED, GST on export of cement, says a press release issued by the ministry of industries and production issued here on Tuesday.--APP