Covid-related goods: Exemptions from duties, taxes extended for another 3 months

ISLAMABAD: The government has decided to extend taxes and duties exemptions on Covid-related goods for another three months, ie, October to December 2020, official sources told Business Recorder.

Sharing the details, sources said that on a summary moved by Ministry of National Health Services, Regulations & Coordination, through Revenue Division, the Federal Cabinet accorded approval to exemption from duties and taxes on import of 61 goods/items for the prevention and treatment of Covid-19, for a period of three years.

Pursuant to this, Ministry of Finance & Revenue and the FBR issued three SROs, thereby promulgating the exemptions for a period of three months from the date of issuance of the said notifications, ie, from March 20 June 19, 2020, with the stipulation that the said period may be extended for another three months by the Board, on the recommendation of Ministry of NHSR&C, if adverse circumstances related to Covid-19 pandemic prevails.

Due to continued surge of Covid-19 and on the request of Ministry of NHSR&C, the FBR, on June 19, 2020, the period of exemption was extended for another period of three months, ie, from June 20 to September 30, 2020, after necessary approval of the Federal Cabinet, which was sought by the FBR.

In the wake of prevalence of pandemic, the Ministry of National Health Services, Regulations & Coordination again approached the FBR for extension in the period of exemption for another three months, ie, October to December 2020.

However, the FBR replied that approval of the Cabinet is mandatory before issuance/extension of any SRO/notification related to exemption of duties and taxes on import of goods, and therefore, advised the MNHS&C to seek approval of the Federal Cabinet.

The ministry has sought approval of the Federal Cabinet, in terms of Rule 16(1) (d) of the Rules of Business, 1973 for extension of SROs 555(1) & SRO 556(1) under the Customs Act, 1969 and Sales Tax Act,1990 from October 01, 2020 to June 30, 2021 and extension of exemption from withholding income tax from October 01, 2020 to August 30, 2021 by amendment in Clause(12B) of part IV of the Second Schedule to the income Tax Ordinance.

Copyright Business Recorder, 2020