ECC to restore exemptions on Central Excise Duty

ECC to restore exemptions on Central Excise Duty
11 October 2006

The Economic Coordination Committee (ECC) of the Cabinet on the recommendation of the Ministry of Industries, Production & Special Initiatives decided to restore Pakistan’s exemptions on Central Excise Duty, sales tax and Duty Draw -Back on Export of export of cement during its meeting held on 27-09-2006.

The MOIP&SI had based its recommendation on the substantial increase in the production capacity of cement Plants in last 6-8 months. The capacity has increased from 21.12 to 28.4Mta. While the production of cement in the first tow months of the current financial year has shown considerable increase of 18.74 per cent over the same period last year yet the capacity utilisation was only 74 per cent.

The MOIP&SI was of the view that as we now have ample cushion to increase production if the demand increases any further, it was time to encourage exports and protect the export market in Afghanistan. Accordingly it has recommended the restoration of exemptions of CED, GST on export of cement.

Published under Cement News