Pakistan: Taxmen Told to Recover Enhanced Rates of FED

Source from:  Business Recorder  07/07/2014

The Federal Board of Revenue (FBR) has asked its field formations to recover enhanced rates of Federal Excise Duty (FED) on all brands of cigarettes from local manufacturers with effect from June 4, 2014. The FBR issued budget instructions (2014-15) here on Saturday to field formations for proper collection of FED from cigarette manufacturers.

The FBR has directed the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to ensure that all supplies of cigarettes are made on the revised rates of Federal Excise Duty (FED) from June 4, 2014. As per the FBR instructions, the rates of FED on cigarettes were enhanced from June 4, 2014 through SRO 422(1)/2014, dated 04.06.2014 in the following manner:

The rate of the FED would be Rs 2,632 per 1,000 cigarettes in the case of locally-produced cigarettes if their on-pack printed retail price exceeds Rs 2,706 per 1,000 cigarettes. The rate of the FED would be Rs 1,085 per 1,000 cigarettes in the case of locally-produced cigarettes if their on-pack printed retail price does not exceed Rs 2,706 per 1,000 cigarettes. The FBR has further conveyed to its LTUs and RTOs that the same rates have now been incorporated in the relevant serial numbers of Table I of the First Schedule to the Federal Excise Act, 2005, with effect from the July 1, 2014, while SRO 422(1)/2014 has been rescinded vide SRO 574(1)/2014, dated 01.07.2014. The concerned LTUs/RTOs would ensure that all supplies of cigarettes are made on the revised rates from June 4, 2014, the FBR budget instructions added. Enditem