Government regularises duty exemption on Diesel
THE Tariff Rate of duty for Diesel is 14% + Rs. 5/- per litre. The effective rate as per Sl. No. 71 of Notification No. 12/2012-CE, is Rs.10.25. Now this Rs. 10.25 can sometimes be more than the tariff rate of 14%+Rs.5/-. Can the exempted rate be more than the tariff rate?
Maybe to avoid the confusion and a future litigation, Government has again amended the Notification to stipulate the effective rate as "14% + Rs.5.00 per litre or Rs.10.25 per litre, whichever is lower".
A friend of mine, a departmental officer had been agitated about this issue since the day they made the effective rate as Rs. 10.25. “Why can't they simply remove the exemption”, he asks.
It is reported that there is panic buying of petrol in Pakistan with further lowering of the price.
Notification No. , Dated: January 30 2015