The National Assembly has passed the Excise Duty (Amendment) Bill, 2025, which will see the scrapping of excise duty on select imported products.
The bill proposed to scrap excise duty on items like fully assembled electric transformers, which have been the subject of debate in recent months.
Excise duty on transformers was initially imposed under the Tax Laws (Amendment) Act, 2024, to promote the local assembly of the crucial item for power distribution.
This, however, did not pan out as the government expected, as the 25 per cent duty slapped on imported transformers led to heightened costs for importing essential components and subsequently affected transformer manufacturing.
