ISLAMABAD: The exemption of customs duty available on the import of goods by diplomats/ embassies/consulates has caused revenue loss of Rs506 million during 2019-20. According to the Tax Expenditure Report-2021 issued by the Federal Board of Revenue (FBR), the goods imported by diplomats/embassies/consulates under the Diplomatic and Consular Privileges Act, 1972 has revenue implications of Rs506 million during the said period.
These goods are being imported under Chapter-99 (Exemptions) of the Pakistan Customs Tariff.
The imports made by the charitable institutions and hospitals has revenue impact of Rs1.7 billion during 2019-20. Under Chapter-99 (Exemptions), the FBR has calculated a revenue impact of Rs3.2 billion on the goods imported by privileged personnel or by organisations or by any person authorised by the contracting parties, under grant-in-aid agreements. The goods are imported by the privileged personnel or by organisations or by any person authorised by the contracting parties, under grant-in-aid agreements (including those agreements which cover off budget foreign contributions or funds brought by registered INGOs without any financial liabilities to the Government of Pakistan).
The revenue loss on this account is Rs3.2 billion. The gifts or donations received by a charitable non-profit making hospital or institution have revenue impact of Rs3.1 billion. The FBR has calculated zero percent revenue loss on account of imports made by the dignitaries of the UAE, Qatar, and Bahrain, and goods imported under the President/Prime Minister/Governors Salary, Allowances and Privileges Act, 1975.
Copyright Business Recorder, 2021