ISLAMABAD (April 25 2003) : In a bid to rationalise the Central Excise Duty (CED) on POL products in the next budget, the government has decided to slash the levy on mineral greases, equal rate of CED at import/local stage on lubricating oil and introduce uniform rate of excise duty on condensate oil.
In the coming budget 2003-04, the government intends to make comprehensive amendments to revise the central excise duty on various oils belonging to petroleum sector.
Sources in the Petroleum and Natural Resources Ministry told Business Recorder here on Thursday that the Petroleum Ministry has received the above mentioned changes in the rates of excise duty on mineral greases, lubricating oil and condensate oil.
The tax authorities were mulling to rationalise the CED structure on the certain POL products, including lubricating oil presently liable to 10 percent of the retail price or Rs 7.15 per litre, whichever is higher and excise duty on mineral greases is 50 percent ad val.
The composite rate of the CED on lubricating oil, both at local and import stages, has created problems for manufacture/ importer as well as the department.
The Central Board of Revenue (CBR) is seriously considering to introduce a single rate either on retail price or on ad valorem.
Furthermore, the rate of CED on mineral greases, ie 50 percent ad val was too high, which would be revised downwards considerably, the sources maintained.
Besides lubricating oil and mineral greases, the CBR was also seriously considering to revise CED on condensate oil.
The oil has not been specifically mentioned in the Excise Tariff but different rate of CED was being charged on the product in different collectorates of sales tax and central excise using different PCT headings.
Sui Northern Gas Pipelines has approached the CBR for the rationalisation of CED on condensate oil.
The CBR has to amend SRO 333 (I)/2002 of June 15, 2002 to bring the above mentioned changes in the POL products, the sources added.