The Federal Board of Revenue has witnessed a decline of 8.1 percent in the collection of the Federal Excise Duty (FED) due to policy initiative of reducing FED rate from 12% to 6% in the Federal Budget 2011-12. The FBR data on the FED issued here on Friday revealed the from federal excise duties has registered a negative growth of 8.1% during H1: 2011-12.
The net revenue stood at Rs 53.5 billion against Rs 58.1 billion during the corresponding period last year. One of the major reasons is the abolition of special excise duty on imports and domestic stage. The commodity-wise collection of major revenue spinners provides a comparison between H1: 11-12 against first half of 2010-11. The share of six major items has been around 85% during this period. The collection from cigarettes exhibited a growth of 8.6% despite decline of 6% in the production.
The collection of cement declined by 14.4% due to reduction of FED rate from Rs 700 P/MT to Rs 500 P/ MT during first half year. The collection from POL products grew by 66.5% during 2011-12. On the hand, the collection of natural gas also improved by 5.1%. In case of beverages, the collection has declined by 8.1% due to policy initiative of reducing FED rate from Rs 12% to 6% in the Federal Budget 2011-12.