The Federal Board of Revenue (FBR) has rescinded a budgetary Statutory Regulatory Order (SRO) related to the increase in the federal excise duty (FED) on cigarettes, as new FED rates has been made part of the Federal Excise Act through Finance Act, 2014 applicable from July 1. In this regard, the FBR has issued an SRO.574 (I)/2014 here on Tuesday to rescind SRO.422(I)/2014 dated 4th June, 2014.
Sources told Business Recorder that the Board had increased FED on cigarettes from June 4 through an SRO.422(I)/2014. The rate of the FED would be Rs 2632 per thousand cigarettes in case of the locally produced cigarettes if their on-pack printed retail price exceeds Rs 2706 per 1000cigarettes. The rate of the FED would be Rs 1085 per 1000 cigarettes where locally produced cigarettes on-pack printed retail price does not exceed Rs 2706 per 1000 cigarettes.
Finance Act 2014 applicable from July 1 has amended Table-I of the First Schedule of the Federal Excise Act to specify new rates of the FED on cigarettes from July 1. As the new FED rates on cigarette have been made part of the law, there is no need for duplication and relevant SRO has been rescinded. Following is the text of S.R.O. 574(I)/2014 issued on Tuesday: In exercise of the powers conferred by clause (b) of sub-section (3) of section 3 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to rescind its Notification No S.R.O.422(I)/2014, dated 4th June, 2014.
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