Cigarettes remained as the top revenue generator, with 34.3 percent share, in overall collection of the federal excise duty (FED) during 2010-11. According to the FBR's quarterly review issued here on Monday, among major items, cigarette has been the top most revenue generator with 34.3 percent share in FED collection, followed by SED (17.9percent), cement (11.3 percent), natural gas (8.5 percent), services (8 percent), beverages (6.7 percent), and POL products (3.7 percent).
Only seven major spinners of FED contributed 90.3percent of the total FED collection. Cigarette is the most prolific revenue generation source of collection of FED. The collection of cigarettes has exhibited a growth of 5.2percent during 2010-11 mainly due to increased rates of FED announced in the Budget 2010-11. The production of cigarettes grew marginally is also attributable to less than expected performance.
The collection from cement decreased by around 2 percent due to a decline of 8.3 percent recorded in production. The collection from natural grew rose robustly by 87 percent due to increase in rate of duty during 2010-11. A decline of 19 percent in the collection from beverages is attributable to allowing of 100 percent adjustments of FED paid for beverage concentrates during 2010-11. As far as special excise duty (SED) is concerned, around 53 percent growth in the collection was recorded mainly due to increased rate of SED from mid-March, 11 to the end of the fiscal year. Its share also improved from 12.9 percent in 2009-10 to 17.9 percent during 2010-11, the FBR report added.
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