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Excise duty on polyester filament yarn reduced to 5 pc

SOHAIL SARFRAZ

ISLAMABAD: The Central Board of Revenue has reduced central excise duty on polyester filament yarn from 10 percent to 5 percent and polyester chips to 5 percent.

Polyester chips is a raw material being used in the manufacture of polyester filament yarn. Earlier there was 15 percent duty on the import of polyester which now had been trimmed to 5 percent.

The CBR has issued two different notifications SRO. 05(I)/2000 and SRO. 06(I)/2000 on Monday.

It has also notified that BOPP film is exempted from central excise duty, if imported for use in electric capacitors subject to fulfillment of requirement of Ministry of Finance's notification No. SRO 505(I)/ 95 of June 14, 1995.

The notification regarding the reduction of duty has also changed the heading numbers of uncoated papers and paper board, in rolls or sheets, not further worked or processed than as specified.

The Finance Ministry's notification SRO 505 (I)/ 95 about the exemption of materials, components, modules and sub-assemblies, if imported for the manufacture of electronic equipment and system specified in the notification from so much of customs duties as are in excess of the rates specified and the whole of sales tax subject to the following condition. The components are in such knocked down condition as is approved by the government in case of each specified electronic equipment and system.

It may be mentioned that local manufacturers had approached earlier National Tariff Commission for tariff protection and NTC decided case in their favour. The Commission referred this matter to ECC for further action which directed the CBR to issue these notifications to protect the local industry.