Numerous items to be exempted from special excise duty

The Central Board of Revenue (CBR) will exempt many sectors and items including vegetable ghee and cooking oil and portland cement from levy of proposed one percent special excise duty to be levied at the local manufacturing stage from July 1.
Sources told Business Recorder on Thursday that the CBR has compiled a list of items/sectors on which special 1 percent excise duty would not be levied at the local manufacturing stage. The exempted items and sectors would be formally announced on imposition of excise duty at the domestic stage.
Sources said the proposed special excise duty would not be extended to the local manufacturing stage on edible oils, excluding epoxidized soyabean oil falling under heading 15.18; concentrates for aerated beverages in all forms, including syrup form; aerated waters; aerated waters containing added sugar or other sweetening matter or flavoured; aerated waters if manufactured wholly from juices or pulp of indigenous vegetables, food grains or fruits and which do not contain any other ingredient, indigenous or imported, other than sugar and colouring materials, preservatives or additives.
At the local manufacturing stage, special excise duty would also not be applicable on non-manufactured tobacco; cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes; locally produced cigarettes; cigarettes manufactured by a manufacturer, either directly or through any other arrangement, in the manufacture of any brand of cigarette in non-tariff areas; portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.
It is also proposed that one percent special excise duty should also be exempted at the domestic stage on motor spirit; aviation spirit; spirit type jet fuel; solvent oil (non-composite); J.P.1; other jet oils/fuels; lubricating oil in packs not exceeding 10 litres; lubricating oil in packs exceeding 10 litres; lubricating oil in bulk (vessels, bouzers, lorries, etc); mineral greases; base lube oil; transformer oil; other mineral oils excluding sewing machine oil; waste oil; liquified natural gas; liquified propane; liquified butanes; liquified ethylene, propylene, butylenes and butadiene; other liquefied petroleum gases and gaseous hydrocarbons; natural gas in gaseous state; other petroleum gases in gaseous state; petroleum bitumen (bitumen and asphalt), including bituminous mixtures; carbon black oil (carbon black feedstock), including residue carbon oil and methyl tertiary butyle ether (MBTE).
One percent special excise duty at the local manufacturing stage would also not applicable on the flavours and concentrates for use in aerated beverages; perfumes and toilet waters; beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations; preparations for use on the hair excluding herbal hair oil and kali mehndi; pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties; greases; organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers; solvent oil (composite) and other (excluding thinners).
The proposed special excise duty would not be applicable at the domestic stage on sales tax zero-rated sectors, including leather; textile; carpets; sports goods and surgical goods.
The levy would also be not applicable on 141 sales tax zero-rated items covered under SRO.509(I)/2007 and Duty and Tax Remission for Export (DTRE) scheme. The special one percent excise duty would be imposed through amending the Finance Bill 2007-08, sources added.