CD exemption to envoys, others: FBR suffers Rs3bn revenue loss

ISLAMABAD: The government has suffered revenue loss of over Rs3 billion on account of customs duty exemption granted on the imports of privileged personnel and diplomats/ embassies during 2020-21.

According to the Tax Expenditure Report-2022 issued by the FBR, the revenue loss due to goods imported by privileged personnel or by organisations or by any person authorised by the contracting parties, under grant-in-aid agreements stood at Rs1.9 billion.

The beneficiary sector are 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 INGO’s without any financial liabilities to the Government of Pakistan.

The government has suffered revenue loss of Rs985 million on the goods imported by various agencies of the United Nations Agencies under the United Nations during this period.

The exempted goods imported by Diplomats/ Embassies/ Consulates Diplomats/ Embassies/ Consulates under the Diplomatic and Consular Privileges Act, 1972 has caused revenue loss of Rs608 million.

The FBR has suffered revenue loss of Rs139 million due to zero-rated supply to diplomats, diplomatic missions, privileged persons and privileged organisations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan.

The FBR has suffered loss of Rs307 million (sales tax) on account of goods imported by various agencies of the United Nations, diplomats, diplomatic missions, privileged persons and privileged organizations which are covered under various Acts and, Orders, rules and regulations made thereunder; and agreements by the Federal Government provided that such goods are charged to zero-rate of customs duty under Customs Act, 1969 and the conditions laid therein UN Organizations.

Copyright Business Recorder, 2022