ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced major tax exemptions for flood relief operation.
The FBR issued SRO 1634(I)/2022 dated August 30, 2022 to allow the tax exemption.
In order to enable the exemption, the FBR amended Second Schedule of the Income Tax Ordinance, 2001. It is pertinent to mention that tax is levied on imported goods under Section 148 of the Ordinance.
According to the amendment: “(123) The provision of Section 148 shall for a period of ninety days not apply to goods required and imported for relief operation for flood affectees, duly certified by the National Disaster Management Authority (NDMA) or the Provincial Disaster Management Authority (PDMA).”
The FBR issued another SRO 1635(I)/2022 dated August 30, 2022 to allow exemption from sales tax on goods imported for flood relief operation.
Sales tax exemption has been granted with effect from August 24, 2022 subject to the conditions and restrictions.
According to the FBR, import of all goods received, in the event of a natural disaster or other catastrophe, as gift and relief consignments or any goods received as gift or donation from a foreign government or organization by the federal or provincial governments or any public sector organization.
However, this exemption is subject to the same conditions as are envisaged for the purpose of apply zero-rate of customs duty under the Customs Act, 1969.
Through SRO 1636(I)/2022 dated August 30, 2022, which stated that the federal government has exempted for a period of ninety days the import and supply of the goods as certified by the NDMA or PDMA for relief operation for flood affectees, from the whole of the sales tax.
Similarly, SRO 1637(I)/2022 dated August 30, 2022 has been issued to exempt federal excise duty leviable on the goods as ceritifed by NDMA or PDMA for relief operation for flood affectees.