10 percent FED imposed on 1800cc cars

10 percent FED imposed on 1800cc cars

The government has imposed 10 percent federal excise duty (FED) on the motor vehicles of cylinder capacity of 1800cc or above. According to the Finance Bill (2013-14) released here on Wednesday, 10 percent FED would be applicable on motor cars, SUVs and other motor vehicles of cylinder capacity of 1800cc or above, principally designed for the transport of persons (other than those of headings 87.02), including station wagons and racing cars of cylinder capacity of 1800 cc or above.

As per new Finance Bill, the government has also imposed Federal Excise Duty @ 40 paisa per kg on imported seeds, Rs 1 per kg on locally produced oil. The rate of federal excise duty on aerated beverages is being increased from 6 percent to 9 percent and introduction of capacity based taxation on aerated beverages to stop evasion and malpractices in the sector Enforced through Finance Bill, 2013, effective from the July 1, 2013.

The government has withdrawn exemption of Federal Excise Duty on hydraulic cement and services provided or rendered by Asset Management Companies. The FBR has withdrawn sales tax exemption on milk preparations obtained by replacing one or more constituent of milk by another substance and supplies against international tender.

The FBR has substituted zero-rating with exemption on the items of non-export oriented sectors; excluded finished consumer goods from the list of items chargeable to sales tax @ 2 percent and expanded scope of withholding regime for withholding of whole of amount of tax by withholding agents on purchases made from unregistered persons