KARACHI: The Federal government has restored federal excise duty (FED) on air-travel, motor vehicle and viscose staple fiber import, banking services and advertisement in print publications.
The government had accorded the exemptions through various statutory regulatory orders (SROs).
According to SRO (I)/2015, an earlier issued order No. 778(I)/2006 has been rescinded, resultantly Hajj passengers, Diplomats, Supernumerary crew, Passengers having arrived in Pakistan from abroad on tickets issued outside Pakistan and are embarking only for return journey from Pakistan, are no more exempt from the collection of excise duty chargeable on the services of travel by air on international journey.
Moreover, exemption from excise duty under SRO 474(I)/2009 have also been withdrawn. Exemptions from FED are no more available on motor cars and other motor vehicles principally designed for the transport of persons including station wagons and racing cars of cylinder capacity exceeding 850cc and viscose staple fiber.
Services provided or rendered by banking companies and non-banking financial companies in respect of Hajj and umrah, cheaque book, insurance, Musharika and Modaraba financing and utility bill collection would now be subject to prescribed rate of excise duty.
Federal government has also withdrawn federal excise duty exemption on advertisement in newspapers and periodicals as SRO 802(I)/2009 and SRO 81(I)/2010 have also been rescinded.
It may be mentioned here that in order to help local newspaper industry and strengthen the independent news media in the country, federal excise duty levied on advertisements in periodicals during the Budget 2009-10 had been withdrawn, which now has been restored.