Coal: Thar fields exempted from federal excise duty

Step taken for development of coal fields, output exempted from 1% federal excise duty.

ISLAMABAD: The federal government has exempted the output from Thar coal fields from the one per cent federal excise duty.

This decision was implemented by a notification issued by the Federal Board of Revenue (FBR) which amends an SRO that was issued earlier.

Regarding the decision, an FBR official said that the government exempted the coal fields from this tax in light of the current energy crisis in the country and the policy of promoting alternative energy sources. He added that the government had instructed the FBR to take this step for the development of the Thar coal fields.

The output from the fields will increase and investors will be encouraged, he said, adding that the billions of tons of coal will be used to produce cheap electricity for the people of the country.

He added that this measure will control the current energy crisis, enhance the economic development and create job opportunities.

Published in The Express Tribune, December 2^nd, 2010.