The Federal Board of Revenue (FBR) has collected only Rs 1.17 billion as special excise duty (SED) during July-September (2007-08), reflecting 10 percent collection against the overall target set for the current fiscal year.
The domestic collection of SED during July-September (2007-08) stood at Rs 347.9 million, whereas at the import stage it was Rs 829.6 million during this period. The annual target of SED at the import stage was Rs 829.6 million and domestic consumption Rs 347.9 million during 2007-08.
Keeping in view the annual target of Rs 12 billion, the SED collection seems to be disappointing during 2007-08. The FBR quarterly review has shown that another important budgetary measure announced in 2007-08 budget was the levy of one special excise duty, both at domestic and import stages.
It is relevant to mention that already zero-rated commodities, food products and many other items of sensitive nature have been exempted from special excise duty. These include vegetables, seeds, fruits, edible oils and fats, petroleum oils and oils obtained from bituminous minerals, natural gas and LPG, fertilisers, goods produced or manufactured and exported by manufacturer etc.
During the first quarter of 2007-08, only 10 percent of annual target has been met from special excise duty both at domestic and import stages. Thus, the collection has fallen short of expectation. However, the system of collection and reporting is being strengthened that should result into improved outcome in coming months.