Inside Financial Markets

FBR proposed imposition of Special Excise Duty on Fertilizer

fbrFBR proposed imposition of Special Excise Duty on Fertilizer

FBR has proposed imposition of Special Excise Duty (SED) on import (of input and finished products) and locally produced goods where SED paid on inputs will be adjustable against final SED paid on locally produced goods from the same.  SED is proposed at a rate of 1%-2.5%. It will be applicable to fertilizer industry inputs, fertilizer final products, pharma, tin plate, computers, gold/silver, foreign currency and other sources of fuel (if imported).  If imposed, it will raise urea prices by PRs16-PRs38/bag assuming its applied to pre-GST factory prices. This is a pass-on item, but can hurt industry pricing power if the govt intervention continues, limiting price pass-on in case of any gas price hike in future (like it did in Jan-14).

Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)