ISLAMABAD (October 05 2003): Fulfilling a major demand of paint and varnish industry, the Central Board of Revenue (CBR) has announced new duty structure for local production and sale of 'thinners' to avoid dual payment of CED at both import and local stages.
The CBR on Saturday amended SRO.333(I)/2002 through SRO(I)/2003 taking into account presentations of stakeholders.
According to the notification, the manufacturers would have to pay the difference between excise duty already paid and that payable on the finished product in case thinner is manufactured by using central excise duty-paid solvent oil.
Previously, organic composite solvents and thinners were liable to Rs 13 per litre, or 10 percent of the retail price, as CED on both local production and import stages, which resulted in dual duty at both import and local stages.
Now, paint industry would only have to deposit the difference between the excise duty already paid and that payable on the finished product.
This is subject to the condition that thinner is manufactured by using CED-paid solvent oil.
Sources said that the leading paint manufacturers from Karachi were persistently pressing the CBR to issue revised SRO on thinners, which was notified through amendments in the previous notification.
Following is the text of the SRO issued here Saturday:
In exercise of the powers conferred by sub-section (1) of section 12A of the Central Excise Act, 1944 (I of 1944), the Federal Government is pleased to direct that the following further amendment shall be made in its notification No. SRO.333(I)/2002 of June 15, 2002, namely:
In the aforesaid notification, in Table-I in column 91), against heading number 3814.0000, in column (2), after clause iii and the entries relating thereto in columns (3) and (4), the following shall be inserted, namely:-
“Thinners”: If manufactured out of central excise duty paid solvent oil (non-composite) of PCT heading 2710.1150.
Difference between excise duty already paid and that payable on the finished product.