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CBR to abolish outdated laws

ISLAMABAD (May 08 2005): To abolish old and redundant tax laws, the Central Board of Revenue (CBR) will withdraw the harsh punishment of imprisonment for the owners and captain of the shipping vessels, who transport excisable commodities through ships (below 300 tons weight).

Official sources told Business Recorder on Saturday that Section 24 of the Central Excise Rules prescribes penalty of Rs 1,000 or six months imprisonment or both on the owner and master of the ship for carrying excisable commodities in any vessel other than a vessel of 300 tons and above.

In past, the law was applicable to control smuggling of salt by small ships and launches/boats as salt was liable to central excise duty (CED). The excise duty on salt was abolished many years back, but this superfluous law is still applicable. This law has no significance in present modern era because neither salt is liable to CED nor any specific weight of ship is required for transportation of excisable commodities.

Officials said the CBR has proposed withdrawal of section 24 of the Central Excise Rules, 1944 through Federal Excise Act, 2005.

There are many other redundant sections of the Excise Act, which need to be abolished, for bringing them in line with the best international practices.

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