The cosmetics manufacturers of non-tariff areas of Swat and Mingora would pay a fixed amount of Rs 125 million as central excise duty (CED) during 2005-06 as per agreement inked with the Central Board of Revenue (CBR). Swat and Mingora are part of Provincial Administered Tribal Areas (PATA) where Federal Excise Act, 2005 and Sales Tax Act, 1990 are not applicable.
On behalf of the cosmetics industry, Khurrum Nainitalwala and Nasim Allahwala signed the agreement, while Sales Tax officials represented the CBR.
Sources told Business Recorder here on Saturday that the cosmetics manufacturers representing 16 units of non-tariff area have agreed to collectively pay to tax officials an amount of Rs 125 million as CED in 2005-06, against Rs 170 million they paid during 2004-05. In 2003-2004, this sector paid Rs 160 million as excise duty.
The amount of Rs 125 million does not include about Rs 45 million from the soap and detergents units due to withdrawal of central excise duty on these items. The new agreement has been signed after excluding the estimated amount of excise duty from soap and detergents, sources said.