ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday clarified that the supply of local and international flood-related goods are exempted from sales tax if the supply is verified by the National Disaster Management Authority (NDMA) or Provincial Disaster Management Authority (PDMA).
In a notification, FBR said that it received various queries calling for exempting local goods needed for flood relief activity under SRO 1636(1) 2022, dated 30 August 2022.
“To provide immediate relief to the flood affectees, the federal government through its cabinet decision in Case No. 394/Rule-19/2022, dated 30-08-2022 directed that both import and supply of the goods as certified by the NDMA or PDMA may be exempted from sales tax and consequently SRO 1636(1) 2022, dated 30-08-2022 was issued to give effect to the subject decision,” read the notice.
“In view of the above, as per SRO 1636(1)/2022 dated 30-08-2022, for a period of 90 days w.e.f. 30-08-2022, any goods that are certified by NDMA/ PMDA are exempt from the whole of sales tax whether they are imported or locally supplied/ sold.”
Flash floods, emerging from months of relentless rain and by extreme spring heat that accelerated the melting of glaciers, have inundated a third of Pakistan, affecting 33 million people.
More than 1,300 people have died, according to Pakistan’s National Disaster Management Authority, and the cost of the damage is estimated at over $10 billion. On the other hand, government officials have warned of a looming food crisis after the natural calamity damaged the country’s vital agriculture sector.
Last week, the FBR granted exemption of sales tax, withholding tax and federal excise duty on the import and local supply of all goods received as gifts and relief consignments, donations from foreign governments or organizations for the relief operations for flood victims.
In this connection, the FBR issued four notifications to allow tax exemption on the import of goods for flood victims.
