ISLAMABAD (January 18 2005): The Central Board of Revenue (CBR) has withdrawn central excise duty (CED) on the import of 33791 metric tons of crude degummed soyabean oil imported by Trading Corporation of Pakistan (TCP). This is subject to the condition that the imported oil will only be sold or auctioned to the sales tax registered persons with prior approval of the CBR. The particulars of the buyers including name/address, sales tax registration number, auction date, quantity with rate and total amount has to be submitted to the concerned collector of sales tax with a copy of the same to the Board.
Moreover, this exemption is exclusively meant for the levy of CED only on the import stage.
In case of non-compliance of any of the conditions, the CBR will charge full amount of CED along with penal action under the Central Excise Act, 1944.
The CBR on Monday issued SRO 54(I)/2005 to notify CED exemption on this specific amount of the commodity imported by TCP.
Official sources told Business Recorder that the TCP, on behalf of Finance Division intends to import 33791 metric tons of crude degummed soyabean oil. The import would be made under the Third-Project Grant Assistance (NPGA), in accordance with the agreement signed between Pakistan and Japan. As per agreement, all duties and taxes chargeable on the imports made under the programme would be exempted and subsequently would be borne by the government.
They said that the crude degummed soyabean oil, classifiable under Pakistan Customs Tariff (PCT) heading 1507.1000, already enjoys exemption from sales tax under serial number 6A of the Sixth Schedule of the Sales Tax Act, 1990. However, the item is chargeable to CED at the rate of 15 percent on import stage under SRO 333(I)/2002.
Officials added that the CBR has, therefore, granted CED exemption on the import of crude degummed soyabean oil to the extent of 33791 metric tons, imported by TCP under NPGA programme.