The Central Board of Revenue (CBR) has withdrawn central excise duty (CED) on soap and detergents whereas sales tax will be charged on retail price of these products. Consumer items like soap, detergents, perfumery and cosmetics, etc., are chargeable to both sales tax and excise duty, which raise their prices. Since it is the considered policy of the government to trim the scope of excise duty production regime, which contributes to the uplift of living standards across all strata of society, it is proposed to withdraw excise duty on the said items.
The proposed relief will encourage local production and sales and discourage smuggling in these items of daily use.