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Excise-free cement supply facility to EPZ units restored

RECORDER REPORT

KARACHI: The facility of supply of cement to Export Processing Zones manufacturing units without payment of excise duty has been restored against bank guarantee.

A press release issued by the Export Processing Zones Authority (EPZA) said since the EPZ manufacturing units enjoyed the status of 'zero rating' on supply of goods from tariff area, the cement used to be supplied to them without payment of excise duty for the last fifteen years. The Central Excise Collectorate had recently withdrawn this facility with the result that construction work of units in EPZs had literally come to a halt.

EPZA Chairman, Maqsood Ismail took up the issue with Secretary Industries, Abu Shamim Arif and the Central Board of Revenue (CBR) and apprised them that basic concept behind this facility was to augment and facilitate the exports from Pakistan.

On Tuesday last, Mohsin Asda, Member, the CBR informed the Chairman, of EPZA that CBR had agreed to restore the facility immediately. According to this decision, the suppliers of cement were to provide a bank guarantee equivalent to the amount of excise duty in order to obviate the chances of pilferage. The bank guarantee would be released as soon as CBR settles the matter.