Govt may impose 5pc duty on CNG kits etc.

Wednesday, 10 June 2009 11:38

ISLAMABAD: The government has decided to impose 5 per cent central excise duty on equipment for call centres and CNG kits and other related equipment in the coming budget.

Moreover, 5 per cent duty will also be placed on equipment relating to civil aviation. “Earlier the said two items were expected from the central excise duty and now the government has decided to take back the exemptions by levying CED by 5 per cent,” said a document obtained from the FBR containing the agreed tax budget’s proposals.

It said the FBR also recommended the imposition of 15 per cent customs duty on tufted carpets and needles pinches in addition, the 5 per cent duty have been recommended, as per the document, on machinery and equipment for balancing modernization and replacement (BMR) purposes and one per cent on machinery and equipment for hotel industry and 5 per cent on industrial related equipment.

However, the government is to erase the 15 per cent customs duty on fully dedicated CNG buses to encourage the CNG run vehicles in the country to make environment of the country clean. In addition, the government is to levy 5 per cent CED on cryogenic tank and 20 per cent on iron, steel, and compressed LPG gases. The CED is also being increased by 25 per cent on led panels, which are used in the advertising industry.

However, the customs duty on dyes have been reduced by 5 per cent from 10 to 5 per cent and chemicals from 25 to 20 per cent and other related items from 16 per cent to 10 per cent, but duty on spin finish oil will be increased to 5 per cent.


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