Budget 2016-17: FED on many items to be restored


WEB DESK: A key revenue generation measure to be taken in budget (2016-17) is the restoration of Federal Excise Duty (FED) a number of items including cosmetics, paints/varnishes and lubricating oils and enhancement in excise duty on beverages and cigarettes.

A senior government official told Business Recorder here on Sunday that the budgetary measure is actively under consideration to increase FED collection in next fiscal. If proposal has been finalised, 10 percent FED may be imposed on cosmetics, paints/varnishes and lubricating oils from 2016-17.

Sources said that the FED was imposed on several items, but due to policy of previous government, it was withdrawn. This withdrawal was unnecessary and has neither encouraged the industry nor benefited the revenue.

Sources said that in budget (2011-12), the excise duty was abolished on solvent oil, other fuel oil, mineral greases, transformer oil, other mineral oils excluding sewing machine oil, waste oil, carbon black oil (carbon black feed stock) including residue carbon oil, methyl tertiary butyle ether (MBTE), greases, organic composite solvents and thinners, viscose staple fibre, motor cars and other motor vehicles.

The policy of abolition of the FED on oils continued in budget (2012-13).

Out of 46 items subjected to the FED, the FBR had abolished the FED on 15 items in 2011-12. In budget (2012-13), excise duty was further abolished on 10 items.

In budget 2016-17, it has been proposed to re-impose FED on cosmetics, paints & varnishes and lubricating oils to generate additional revenue in next fiscal year. – Business Recorder

loading...
loading...