Official sources told Business Recorder that the exemption of excise duty is available on bringing excisable commodities from non-tariff area of Azad Kashmir into tariff area. The exemption has been given under government policy to encourage investment in the non-tariff area of Azad Kashmir.
The exemption was withdrawn due to a typing mistake in SRO 649(I)/2005. This inadvertent mistake has been rectified and now the previous position has been restored whereby excise duty exemption will be available on commodities manufactured in non-tariff area and subsequently brought into the tariff area.
FOLLOWING IS THE TEXT OF THE NOTIFICATION ISSUED ON FRIDAY: In exercise of the powers conferred by clause (c) of sub-section (1) of section 3 of the Federal Excise Act, 2005, the Federal Government is pleased to direct that the following amendments shall be made in the notification SRO 649(I)/2005 dated the 1st July 2005, namely:-
In the aforesaid notification, in the preamble, after the words "non-tariff areas", the words "excluding the territory of Azad Jammu and Kashmir" shall be inserted and shall be deemed to have been so inserted on the 1st day of July 2005.