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Customs to charge Re 1 per kg FED on edible oils import

ISLAMABAD (January 15 2006): The Central Board of Revenue (CBR) has directed all collectors of customs to collect federal excise duty (FED) at the rate of one rupee per kg at import stage from commercial/ industrial importers of edible oil, including crude oil and vegetable ghee and cooking oil.

According to CBR directive to collectors of customs on Saturday, the department has issued SRO 24(I)/2006 of January 7, 2006 whereby FED at the rate of one rupee per kg has been levied at import stage on edible oil, including crude oil and vegetable ghee and cooking oil.

Accordingly, for the aforesaid items, customs collectorates shall collect FED at @ Re 1 per kg at import stage from commercial and industrial importers in lieu of duty payable on value-addition at local manufacturing stage.

The aforesaid duty is payable in addition to federal excise duty at the rate of 15 percent, already leviable under the First Schedule to the Federal Excise Act 2005. However, this federal excise duty at one rupee per kg collected at import stage shall be accounted for in its own separate head of account (02300200) and deposited at the time of filing of 'goods declaration' (GD) for 'home consumption'.

After the levy of federal excise duty at the rate of Re 1 per kg at import stage on these items, payment of sales tax on upfront value-addition of ten percent on imports at these items made by commercial importers under the Sales Tax Special Procedure Rules, 2005 notified vide SRO.522(I)/2005 has been done away with.

The CBR added that since as a result of SRO 24(I)/2006 liability of FED on edible oil and ghee/cooking oil shall be discharged at import stage and there will be no subsequent adjustment of input tax, the CBR has issued SRO 25(I)/2006 whereby SRO 488(I)/2004 has been amended.

In a separate clarification issued to the field formations, the CBR has said that the items falling under Pakistan Customs Tariff (PCT) heading 1516.1000 are imported for use in vegetable ghee and cooking oil/edible oil sector, the same are chargeable to FED at the rate of one rupee per kg at the import stage in addition to 15 percent FED leviable under the First Schedule of the Federal Excise Act, 2005, subject to the fulfilment of import conditions, the directive added.

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