Abolition of Special Federal Excise Duty on imports to be effective from June 20

LAHORE: To incentive trade and industry in the country and also to reduce the burden of indirect taxation, the Federal Government, in the budget for financial year 2011-12 announced complete abolition of Special Federal Excise Duty and reduction of Sales Tax rate from 17 percent to 16 percent effective 1st of July, 2011, FBR Spokesperson informed.

However, with a view to further facilitate the Trade and Industry in difficult times, it has been decided to give effect to these two measures on imports from 20th of June, 2011. Consequently, there will be no special excise duty on imports and the rate of sales tax on imported goods shall be 16 percent with effect from 20-06-2011.

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