Federal Excise Duty and Sales Tax on Production Capacity (Aerated Waters) Rules, 2013

Federal Government has issued “Federal Excise Duty and Sales Tax on Production Capacity (Aerated Waters) Rules, 2013” vide SRO 649(I)/2013 dated 09.07.2013. These rules are effective from 10.07.2013.

Manufacturers of aerated waters are now required to pay federal excise and sales tax on production capacity of the manufacturer. Every manufacture will file declaration in respect of production capacity which will be verified by the committee comprising of three members i.e. (i) an officer of Inland Revenue not below the rank of deputy commissioner nominated by the concerned commissioner, (ii) one member of FPCCI or OICCI, and (iii) one technical member from Institute of Engineers of Pakistan.

Annual rate of duty and taxes has been fixed from Rs. 1,175,000/- to Rs. 4,700,000/- per filing valve/spout. The amount of duty and taxes will be paid monthly. For the tax periods November to February 5% of the total amount of duty worked out will be paid; whereas for the remaining tax period 10% of the amount will be paid by the manufacturer.

Manufacturer will be entitled for adjustment of excise duty and sales tax in accordance with the provisions of law.

Every manufacturer will ensure that net amount of duty and taxes paid in the current financial year exceeds the duty and taxes paid in the preceding year by more than 25%.