In a proactive move to support the ongoing efforts in the fight against the COVID-19 pandemic, the Federal Board of Revenue (FBR) has granted a significant tax exemption on the import of 30 million face masks.
The tax relief, issued through SRO 952(I)/2021 on Wednesday, underscores the government’s commitment to facilitating initiatives aimed at curbing the spread of the virus.
The decision to grant a sales tax exemption was made in alignment with the federal government’s resolution dated July 19, 2021. The FBR, through SRO 952(I)/2021, formally allowed a one-time, whole-of-sales tax exemption specifically for the import of thirty million adult 3xplu knit face masks.
These face masks were generously donated by M/s. Hanes Brands Inc., based in North Carolina, United States, to the Punjab government. The donation reflects a collaborative effort between the private sector and the government to address the challenges posed by the COVID-19 pandemic and ensure the well-being of the community.
The tax exemption is a strategic measure to encourage and facilitate the import of essential items required for public health and safety. In the wake of the pandemic, face masks have become a critical component in preventing the transmission of the virus, and this tax relief aims to support initiatives that enhance the availability of such vital protective equipment.
The donated face masks, being a contribution to the ongoing efforts against COVID-19, signify the importance of public-private partnerships in times of crisis. By waiving the sales tax on this significant import, the FBR has not only eased the financial burden on the humanitarian donation but has also demonstrated the government’s commitment to leveraging all available resources in the battle against the pandemic.
The tax exemption aligns with the broader strategy of promoting corporate social responsibility and encouraging businesses to actively participate in initiatives that contribute to the greater good. The partnership between M/s. Hanes Brands Inc. and the Punjab government serves as a commendable example of how private entities can play a pivotal role in supporting the public sector during challenging times.
This move also highlights the adaptability of tax policies to address emergent situations. The FBR’s swift response in granting a one-time exemption for the import of face masks demonstrates the government’s agility in tailoring fiscal measures to meet the evolving needs of public health.
As the world continues to grapple with the effects of the pandemic, such collaborative efforts between government bodies and private enterprises underscore the importance of unity and shared responsibility. The tax exemption on the import of face masks is not only a financial relief but also a symbolic gesture of solidarity in the collective fight against COVID-19.
