Summary
- The decision is part of broader fiscal measures aimed at increasing revenue collection and expanding the tax base across various industrial and commercial sectors.
- The notification further indicates that such measures are part of regular fiscal policy adjustments aimed at strengthening revenue streams without placing excessive burden on essential consumer goods.
- The Federal Board of Revenue (FBR) will oversee implementation and ensure compliance with the newly introduced excise structure across the supply chain.
The federal government has imposed a Federal Excise Duty (FED) of Rs 80 per litre on white spirit and mineral turpentine oil, according to official notifications issued by the authorities.
The decision is part of broader fiscal measures aimed at increasing revenue collection and expanding the tax base across various industrial and commercial sectors. White spirit and mineral turpentine oil are commonly used as industrial solvents in paint, cleaning, and manufacturing industries.
According to the notification, the new levy will apply uniformly across all imports and local production of these petroleum-based solvents. The move is expected to generate additional revenue for the national exchequer at a time when the government is working to manage fiscal pressures and meet revenue targets.
Officials said the adjustment in federal excise duties is aligned with ongoing economic reforms under the broader taxation framework, which seeks to rationalize tax structures and reduce reliance on indirect borrowing. The government has been gradually expanding the list of taxable goods in an effort to improve documentation and compliance in the industrial sector.
Industry stakeholders are expected to review the impact of the new duty, as it may slightly increase production costs in sectors relying on these materials, particularly paints, coatings, and chemical manufacturing. However, authorities maintain that the overall economic impact will remain manageable.
The notification further indicates that such measures are part of regular fiscal policy adjustments aimed at strengthening revenue streams without placing excessive burden on essential consumer goods. The government continues to balance revenue generation with industrial competitiveness.
The Federal Board of Revenue (FBR) will oversee implementation and ensure compliance with the newly introduced excise structure across the supply chain.
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