Federal Excise Duty Or Federal Excise Tax

March 18, 2014

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Last Updated: March 18, 2014

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Federal Excise Duty Or Federal Excise Tax

OVERVIEW OF FEDERAL EXCISE DUTY (FED)

Federal Excise duty formerly known as Central Excised Duty is Levied by the government of Pakistan as Federal Excise Tax on the following:

Goods produced or manufactured in Pakistan;
Goods imported into Pakistan;
Such goods as the Federal Government may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein.
Services provided or rendered in Pakistan

Special Excise Duty in Pakistan

As part of budgetary measures for the year 2007-08, Special FED at 1% has been levied on goods which are manufactured or are imported in Pakistan. This duty is in addition to FED as prescribed in First Schedule of the Federal Excise Act, 2005. For list of goods excluded from purview of this special duty and other details see SRO 655(I)/2007.

All the goods and services are exempt under section 16, except:
1- the goods and services specified in the First Schedule, which shall be charged to Federal excise duty as, and at the rates, set forth therein;

2-The goods and services specified in the Third Schedule shall be exempt from duty subject to such conditions and restrictions if any, specified therein and no adjustment in terms of section 6 shall be admissible in respect of goods exempt from duty of excise whether conditionally or otherwise; and
3- The goods as mentioned in the Second Schedule shall be chargeable to FED in the same manner as provided in the Sales Tax Act, 1990, as provided in section 7 of the Federal Excise Act, 2005. The same shall apply to services as notified vide SRO 550(I)/2006 dated 5th June 2006.