Islamabad: The Federal Board of Revenue (FBR) on Tuesday (August 30) announced the exemption of sales tax, withholding tax, customs duty, and Federal Excise Duty (FED) on the import of all goods received as gifts, relief consignments, or donations for flood victims, news sources reported. The exemption will apply for 90 days to all foreign governments or organizations contributing to the flood victims.
The FBR published three notices in the official gazette to notify the duty and tax exemption. The FBR announced the exemption from sales tax under S.R.O. 1634 (1)/2022. According to the announcement, the exemption would apply to any foreign agencies and organisations sending supplies and goods designated as vital assistance items by the National Disaster Management Authority (NDMA) or the Provincial Disaster Management Authority (PDMA). With effect from August 24, the federal government has exempted items from the whole sales tax by S.R.O. 1635 (1)/2022. Moreover, the FBR issued S.R.O. 1636 and 1637 affirming relief product duty exemption.
It is vital to highlight that floods have devastated a huge portion of the country. The overall damage has been estimated by disaster management experts to be USD 10 billion, with more than 33 million people directly impacted and displaced by the catastrophe.
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