FBR exempts duty and taxes on imports for flood relief

FBR exempts duty and taxes on imports for flood relief

In a move aimed at facilitating and expediting flood relief efforts, the Federal Board of Revenue (FBR) announced on Wednesday that it would be waiving customs duty, excise duty, and taxes on consignments related to flood relief activities for the next three months.

The decision, outlined in SRO 070, 071, and 073 of 2023, is expected to provide a significant boost to organizations and individuals involved in relief operations.

The FBR stated that the exemptions are applicable to consignments involved in flood relief activities, and they will be in effect from December 01, 2022, for a period of three months. The relief measures extend to donation consignments and relief items certified by either the National Disaster Management Authority (NDMA) or a Provincial Disaster Management Authority (PDMA).

The move by the FBR underscores the government’s commitment to supporting those affected by natural disasters, particularly floods, which can have devastating consequences on communities, infrastructure, and agriculture.

The decision to grant exemptions on customs duty, excise duty, and taxes is expected to encourage more contributions from various organizations and individuals towards flood relief efforts. This includes items such as food supplies, medical aid, clothing, and other essentials crucial for the well-being of those impacted by floods.

The National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs) play a vital role in certifying the authenticity of relief items and ensuring that they are directed towards the intended beneficiaries. The FBR’s decision to link the exemptions to certifications by these authorities adds an extra layer of accountability and transparency to the relief process.

This tax relief initiative aligns with the broader national strategy to enhance disaster management capabilities and ensure a swift and effective response to crises. By incentivizing donations and contributions through tax exemptions, the government aims to mobilize resources more efficiently and encourage a collaborative approach to tackle the aftermath of natural disasters.

Furthermore, the three-month duration of the exemptions provides a defined window for relief activities, ensuring that the support is targeted and timely. It also allows relief organizations and contributors to plan their initiatives with clarity and take advantage of the tax benefits provided by the government during this period.

As Pakistan continues to grapple with the challenges posed by natural disasters, the FBR’s decision is a step towards fostering a more resilient and responsive disaster management framework. The collaboration between government entities, relief organizations, and the private sector becomes crucial in mitigating the impact of floods and ensuring a swift recovery for affected communities.