ISLAMABAD, June 9: The government has exempted federal excise duty (FED) on POL products and cable operators.

According to the Finance Bill 2007, to rationalise the taxation on POL products, excise duty of 88 paisas per litre on motor gasoline and six paisas per litre on jet fuel has been abolished. The products remain chargeable to sales tax.

The excise duty at the rate of Rs2,000 per metric ton on bitumen has been abolished.

Customs duty is also being revised downwards to encourage its imports; excise duty at the rate of five per cent on exchange companies has been abolished to encourage remittances.

Moreover, to provide a level-playing field to non-life insurance companies in the field of health insurance vis-'-vis life insurance companies, excise duty leviable at the rate of five per cent on health insurance has been abolished.

To boost the media industry and to provide cheaper entertainment to the general public, excise duty at the rate of Rs8 per connection per month leviable on cable TV operators has been abolished; excise duty shall now be leviable on supplies instead of clearance as done in sales tax and shall be deposited with the return on the 15th day of the following month.