20000317

CED withdrawal contributes in decreasing net revenue collection

RECORDER REPORT

ISLAMABAD: The withdrawal of central excise duty (CED) on the distribution of gas last year and decrease in the production of cigarettes contributed primarily in decreasing the net revenue collection of CED for the current fiscal, it was officially learnt here on Thursday.

The rate of central excise duty on cement, one of the major revenue sources, was 40 percent of the retail price, which has been reduced to Rs. 1400 per tonne. The reduction of CED on telephone calls from 25 to 15 percent also effected the gross collection of excise. The total production of cigarettes was lower this year as compared to the production of last year.

The net revenue collection of the CED indicates decrease of 6.6 percent during the last eight months. The gross revenue collection of CED depicts decrease of seven percent while 60.7 percent decrease has been registered in the amount paid in rebates during the same period.

The decrease is attributed due to the withdrawal of central excise duty from polypropylene, sugar, plastic goods, and woven fabrics in the budget 1999-2000.