The Federal Board of Revenue (FBR) has drastically reduced the regulatory duty on export of high speed diesel and superior kerosene oil to Afghanistan from October 16, 2008. The board has amended SRO 946(I)/2008 of September 4, 2008 through a notification issued on Wednesday.
The RD on export of HSD has been reduced from Rs 7.28 per litre to Rs 0.68 per litre. The duty on superior kerosene oil (SKO) has been slashed from Rs 8.83 per litre to Rs 0.62 per litre on export to Afghanistan. The price differential claim on HSD and SKO would be zero per litre from October 16, 2008. The one percent coverage for exchange loss on consumer price effective from October 16, 2008 would be Rs 0.68 per litre for HSD and Rs 0.62 per litre for SKO.
The new rates will remain in force till an amendment is made by the Ministry of Petroleum on the basis of their calculation. The export of HSD and SKO made to Afghanistan will be contingent upon strict adherence to the procedure, terms and conditions laid down in the export policy order. Sources said that basic purpose of slapping RD on export of diesel and kerosene oil to Afghanistan is to bring its price at par with Pakistan.
The government had issued a notification SRO 946(I)/2008 of September 4, 2008 whereby regulatory duty equivalent to the Price Differential Claims, in Rupees per litre, of HSD and SKO as notified by the Ministry of Petroleum and Natural Resources, plus 1 percent of prevalent consumer price to cover for foreign exchange loss, shall be levied on export of HSD and SKO to Afghanistan. Later, the RD has been reduced through an amendment in the relevant notification from October 1, 2008. Now, another amendment has been made to further reduce RD under SRO(I)/2008 issued on Wednesday.
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