The Federal Board of Revenue (FBR) has taken a significant step by exempting sales tax on the import of oxygen gas.
The exemption, effective until June 30, 2022, is outlined in SRO 729(I)/2022, demonstrating the government’s commitment to addressing critical medical needs in the wake of the global health crisis.
The FBR’s decision to waive sales tax on the import of oxygen gas aligns with efforts to ensure an uninterrupted and affordable supply of essential medical resources. The sales tax exemption covers the import of oxygen gas, cylinders designed for oxygen storage, and cryogenic tanks specifically intended for oxygen storage. These exemptions are applicable to goods falling under the specified Pakistan Customs Tariff (PCT) codes.
The FBR clarified that the federal government had initiated this exemption to facilitate the import of oxygen gas for medical purposes. The exemption period, spanning from November 9, 2021, to June 30, 2022, encompasses crucial months during which medical facilities grappled with surges in demand for oxygen due to the global health situation.
The exempted goods under this provision include:
1. Oxygen Gas (PCT 2804.4000):
• Oxygen gas, a critical component in medical treatments, has been granted a sales tax exemption. This includes oxygen sourced through imports, ensuring a cost-effective supply chain for medical facilities.
2. Cylinder for Oxygen Gas (PCT 7311.0090):
• Cylinders designed specifically for the storage and transport of oxygen gas are covered by the sales tax exemption. This provision aims to reduce the financial burden on medical institutions procuring necessary equipment.
3. Cryogenic Tanks for Oxygen Gas (PCT 7311.0030):
• Cryogenic tanks, specialized containers for storing oxygen gas at extremely low temperatures, have also been included in the sales tax exemption. This recognizes the importance of maintaining a stable and reliable infrastructure for oxygen storage.
The FBR’s decision to provide tax relief on the import of these essential medical resources is part of the broader governmental strategy to enhance the healthcare system’s resilience. By incentivizing the import of critical supplies, the government seeks to alleviate financial pressures on medical institutions and ensure a steady and affordable supply of oxygen for medical purposes.
The period of exemption, ending on June 30, 2022, is indicative of the government’s recognition of the ongoing challenges faced by the healthcare sector. During this period, the demand for medical oxygen remained heightened, particularly in the treatment of respiratory conditions associated with the prevailing health crisis.
As the healthcare system continues to navigate the complexities of the evolving global health situation, the FBR’s sales tax exemption on the import of oxygen gas serves as a supportive measure. Stakeholders within the medical community and related industries will likely welcome this initiative as it contributes to the accessibility and affordability of vital medical resources.
The FBR’s commitment to addressing the needs of the healthcare sector through targeted fiscal measures is expected to be instrumental in fortifying the country’s response to health emergencies. The sales tax exemption on the import of oxygen gas underscores the government’s recognition of the pivotal role that tax policies can play in ensuring the availability of essential medical supplies during challenging times.
