The Sindh government has taken a significant step in supporting flood relief operations by exempting sales tax on services provided by customs agents and terminal operators.
The move is aimed at facilitating the clearance and handling of consignments imported for flood relief efforts.
A recent notification issued by the Sindh Revenue Board (SRB) announced the exemption, specifying that sales tax relief applies to customs agents’ services related to the clearance of consignments imported for flood relief operations. Additionally, the exemption extends to services provided by port operators and terminal operators involved in the handling, storage, and clearance of these relief consignments.
To implement this tax relief, the provincial government made amendments to a notification issued on September 13, 2022. As per the revised notification, the specified service providers are entitled to avail the exemption from September 13, 2022, onwards.
Prior to this amendment, several other service providers were already granted sales tax exemption to support charitable and relief efforts. These included services provided by restaurants for free distribution as donation or charity, catering services, suppliers of food and drinks for free distribution as donation or charity, advertisements for charity and donations in the Prime Minister’s Flood Relief Fund or in the Chief Minister Sindh’s Flood Relief Fund, renting of machinery, equipment, and tangible goods for rehabilitation and reconstruction, labor and manpower supply services during flood relief operations, and services by persons engaged in inter-city transportation or carriage of flood relief goods by road.
The SRB emphasized that the exemption granted through this notification, unless rescinded earlier, will stand rescinded from January 01, 2023. This suggests that the tax relief is a time-sensitive measure to encourage and support prompt flood relief operations in the region.
The decision to exempt sales tax on crucial services related to flood relief showcases the Sindh government’s commitment to facilitating and expediting the transportation and handling of relief materials. By removing tax burdens on customs agents and terminal operators, the government aims to enhance the efficiency and effectiveness of the relief operations, ensuring that essential supplies reach those affected by the floods in a timely manner.
This move aligns with broader efforts to provide a supportive regulatory environment for charitable and relief activities, acknowledging the importance of collaborative efforts to mitigate the impact of natural disasters on communities in need. The Sindh government’s proactive approach in this regard underscores the significance of public-private partnerships in times of crisis, fostering a more resilient and compassionate society.