Cigarette units need not to pay 10 percent extra excise duty: supervised clearance reintroduced

ISLAMABAD (July 15 2003) : To control manufacture of counterfeit cigarettes, the Central Board of Revenue (CBR) has deputed excise inspectors at all cigarette factories from July 10, 2003, says a Central Excise General Order (CEGO) 5/2003 issued here on Monday.

Now, the cigarette manufacturers are no more required to pay 10 percent more excise duty, as in year, which was compulsory under the self-clearance system.

The CBR has withdrawn the facility of self-clearance under an amendment introduced in CEGO 1 of 2001.

However, manufacturers of cement and beverages still have the option to operate under supervised clearance or self-clearance.

Sources said that leading cigarette manufacturers and collectorates of sales tax and central excise had reported to CBR about revenue leakage under self-clearance procedure.

On this complaint, the authorities have made it mandatory for all cigarette manufacturers to clear their goods under supervised clearance system.

Previously, beverages, cement and cigarette sectors were given an option to pay 10 percent extra excise duty as compared to previous year for operating under the self-clearance system.

Contrary to this, issuance of CEGO 5/2003 has exempted cigarette manufacturers from paying 10 percent more revenue against previous fiscal year to avail facility of self-clearance, sources added.

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