Staple Cotton (Excise Duty) Ordinance, 1978

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THE STAPLE COTTON (EXCISE DUTY) ORDINANCE, 1978 
 
 
 
CONTENTS  
1.  Short title and commencement 
2.  Definitions 
3.  Rate of duty 
4.  Manner of payment of duty 
5.  Exemptions 
6.  Power to make rules 
7.  Application of the provisions of the Central Excises and Salt Act, 1944 
  
 
 

 
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THE STAPLE COTTON (EXCISE DUTY) ORDINANCE, 1978 
ORDINANCE NO. XXX OF 1978 
[25th June, 1978] 
An Ordinance to provide for the levy of a duty of excise on staple cotton produced by ginning 
factories and sold to textile mills. 
 WHEREAS it is expedient to provide for the levy of excise duty on staple cotton produced by 
ginning factories and sold to textile mills;  
 AND WHEREAS the President is satisfied that circumstances exist which render it necessary 
to take immediate action;  
 NOW, THEREFORE, in pursuance of the Proclamation of the fifth day of July, 1977, read 
with the Laws (Continuance in Force) Order, 1977, (C.M.L.A. Order No. I of 1977), and in exercise 
of all powers enabling him in that behalf, the President is pleased to make and promulgate the following 
Ordinance:— 
 1. Short title and commencement .—(1) This Ordinance may be called the Staple Cotton 
(Excise Duty) Ordinance, 1978. 
 (2) It shall come into force at once and shall be deemed to have taken effect on the first day of 
July, 1976: 
 Provided that, unless the Federal Government, by notification in the official Gazette, otherwise 
directs, it shall not apply to staple cotton of a ny crop following the crop of 19 76-77 and shall stand 
repealed on the first day of July, 1978. 
 2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or context,— 
(a)  “Board” means the Central Board of Revenue constituted under the Central 
Board of Revenue Act, 1924 (IV of 1924);  
(b)  “Corporation” means the Cotton Trading Corporation of Pakistan;  
(c)  “factory” means a cotton ginning factory producing staple cotton for sale;  
(d)  “sale price ” means the price of four hundred and fifteen rupees per maund, 
inclusive of excise duty, at which staple cotton is sold by the Corporation to a 
textile mill;  
(e)  “staple cotton” means ginned cotton other than desi-cotton 
 3. Rate of duty. There shall be levied and collected a duty of exercise on staple cotton produced 
and sold by a factory, whether directly or through the Corporation, to any buyer, other than the Cotton 
Export Corporation, at the rates set forth in the Schedule:  
 
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 Provided that, where the staple cotton is sold through the Corporation at th e rates prescribed 
by the Corporation, the duty shall be payable by the Corporation out of the sale price. 
 4. Manner of payment of duty . The duty shall be paid at the time of sale and before the 
delivery of staple cotton to a textile mill.  
 5. Exemptions. The Board may, by special order in each case, exempt from the payment of the 
whole or any part of the duty leviable under this Ordinance, under circumstances of special nature to 
be stated in such order, any staple cotton on which such duty is leviable.  
 6. Power to make rules . The Central Board of Revenue may, by notification in the official 
Gazette, make rules to carry into effect the purposes of this ordinance.  
 7. Application of the provisions of the Central Excises and Salt Act, 1944 . The provisions 
of the Central Excises and Salt Act, 1944 (I of 1944), and the rules made thereunder shall, in so far as 
they are not inconsistent with the provisions of this Ordinance and do not affect the levy and collection 
of duty under this Ordinance, apply to staple cotton and to the recovery of the duty not paid. 
SCHEDULE 
(See section 3) 
S.No. Description Rate of duty 
1 Staple Cotton produced by cotton ginning factories in the 
public sector which are under the administrative control of the 
Cotton Trading Corporation of Pakistan. 
Sixty rupees 
per maund 
2 Staple Cotton produced by cotton ginning factories in the 
private sector which are not under the administrative control of 
the Cotton Trading Corporation of Pakistan. 
Fifty-five 
rupees per 
maund.