FBR exempts diagnostic support, health safety items from taxes

ISLAMABAD, Mar. 21 (Gwadar Pro) - In order to combat coronavirus pandemic in Pakistan, the Federal Board of Revenue (FBR) has exempted all kinds of diagnostic support and health safety items from all taxes including Income Tax, Sales Tax and Customs Duty for the period of three months.

According to a report of The News, The FBR issued Statutory Regulatory Orders (SROs) related to Customs Duty, Income Tax and Sales Tax on Friday night and exempted all diagnostic support items including medical equipment/machinery and apparatus like coronavirus detection kits, surgical masks, multimode ventilator with air compressor, face shields and other medical equipments for a period of 3 months.

The period of three months may be extended for another three months by the FBR on the recommendation of the Ministry of National Health Services Regulation & Coordination (MNHSR&C) if adverse circumstances related to Covid-19 pandemic prevailed.

According to SRO 235(1)/2020 issued by the FBR, in exercise of the powers conferred by section 19 of the Customs Act 1969 (IV) of 1969, the Federal Government has exempted these items from whole of the customs duty, regulatory duty and additional customs duty, for a period of three months from the date of issuance of this notification.

Under the SRO.237(I)/2020, sales tax exemption would be applicable on the import and subsequent supply of 61 items from payment of sales tax for a period of three months starting from the date (March 20) of issuance of this notification.

Through an SRO 23 (1)/2020 issued on Friday, in exercise of powers conferred under sub-section (2) of section 53 of the Income Tax Ordinance, 2001, the federal government has further amended in the Second Schedule to the Income Tax Ordinance. The provisions of section 148 shall not apply to the import of following goods for a period of three months starting from date of issuance of the notification.