ISLAMABAD: The collection of Federal Excise Duty witnessed a negative growth of 8.44 per cent in the first seven months this year partly because of low collection from cement, services and beverages.
As a result, the collection of excise duty from 10 top revenue spinners reached to Rs59.228 billion in July-Jan period this fiscal year, down by 8.44 per cent from Rs64.689 billion over the corresponding period last year.
A senior official in the Federal Board of Revenue said that the decline in excise duty was the reflection of the government measures including reducing the number of goods liable to excise duty, elimination of special excise duty in the budget.
However, the collection of Federal Excise Duty (FED) from cigarettes rose by 14.4 per cent to Rs26.972 billion during the July-Jan period as against Rs23.428 billion in the same period last year.
The collection of FED on natural gas recorded a growth of 3.8 per cent to Rs6.904 billion during first seven months of this fiscal as against Rs6.654 billion over the corresponding period last year. However, this growth is the reflection of increase in the gas prices in the recent past by the government.
The reduction in FED rate on cement and complete withdrawal on white cement led to 16.8 per cent decline to Rs6.610 billion in the July-Jan period as against Rs7.947 billion in the corresponding period last year.
The FED collection on services also dropped 26 per cent to Rs5.276 billion in the July-Jan period compared to Rs7.126 billion.
Moreover, government had reduced FED on aerated beverages from 12 per cent to six per cent. As a result of this, the collection of FED dipped by 11.6 per cent to Rs4.532 billion on beverages as against Rs5.129 billion over the same period last year.
Alone the abolishing of one per cent special excise duty led to a 76.5 per cent decline in FED collection at Rs2.256 billion during the period under review from Rs9.591 billion the same period last year.
The collection of FED on perfumery and cosmetics increased by 19.3 per cent to Rs1.5 billion.
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