ISLAMABAD: The Federal Board of Revenue, in a budgetary proposal submitted to the Finance Ministry, proposed a 10 percent Federal Excise Duty (FED) on cosmetics, paints and varnishes in coming budget (2014-15).
According to the FBR has proposed introduction of a new FED structure on lubricating oils. Lubricating oils have been proposed to be subjected to 10 percent FED of the retail price if sold in retail packing and FED at the rate of Rs7.15 per litre if such oil sold in bulk.
It has been proposed to levy FED on cosmetics at 10 percent of the retail price. The board also proposed imposition of 10 percent FED on paints and varnishes in budget (2014-15). The FBR is of the view that the FED was imposed on several items, but due to policy of previous government, it was withdrawn. This withdrawal was unnecessary and has neither encouraged the industry nor benefited the revenue.
According to reports, in budget (2011-12), the excise duty was abolished on solvent oil, other fuel oil, mineral greases, transformer oil, other mineral oils excluding sewing machine oil, waste oil, carbon black oil (carbon black feed stock) including residue carbon oil, methyl tertiary butyle ether (MBTE), greases, organic composite solvents and thinners, viscose staple fibre, motor cars and other motor vehicles. The policy of abolition of the FED on oils continued in budget (2012-13).
Out of 46 items subjected to the FED, the FBR had abolished the FED on 15 items in 2011-12. In budget (2012-13), excise duty was further abolished on 10 items. In budget 2014-15, it has been proposed to re-impose FED on cosmetics, paints & varnishes and lubricating oils to generate additional revenue.
