FBR has issued Federal Excise Notification No. SRO 822(I)/2011 with a
view to restrict adjustment of Federal Excise Duty paid on beverage concentrate use in the manufacture of aerated waters. This adjustment has been restricted with a view to ensure that no refund claim accrues on account of use concentrate in aerated waters. At present excise duty on concentrate is leviable @ 50% ad val. whereas, excise duty on aerated waters is only @ 6% (reduced from 12% of retail price to 6% of retail price in the budget for FY 2011-12). Due to this duty differential, refunds of excise duty paid on beverage concentrate were accruing. The purpose of this notification is to ensure that no refund accrues and only the adjustment takes place to the extent of duty payable on aerated waters.

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