ISLAMABAD: The Federal Board of Revenue (FBR) has granted income tax and federal excise duty exemption on any donation received in the Prime Minister's Flood Relief Fund from August 5, 2022.

According to the SRO 1589(I)2022 issued by the FBR here on Tuesday, in exercise of powers conferred by sub-section (2) of section 16 of the Federal Excise Act, 2005, the federal government has exempted the federal excise duty leviable on any donation received in Prime Minister's Flood Relief Fund, 2022. This notification shall take effect on and from August 5, 2022.

Under SRO 1590(I)2022, the FBR has amended the Second Schedule (Exemption Schedule) of the Income Tax Ordinance 2001. The income tax exemption would be available to the Prime Minister's Flood Relief Fund, 2022 with effect on and from August 5, 2022.

The provisions of section 151 (tax on profit on debt) shall not apply to the Prime Minister's Flood Relief Fund, 2022 with effect on and from August 5, 2022.

The provisions of section 236 (advance tax on telephone and internet users) shall not apply on the amount donated through SMS to the Prime Minister's Flood Relief Fund, 2022 with effect on and from August 5, 2022.

Copyright Business Recorder, 2022