FBR Clarifies Sales Tax Exemption for Flood-Related Goods

The Federal Board of Revenue (FBR) Tuesday clarified that the total supply of flood-related goods both imported and locally supplied/sold is exempt from the whole Sales Tax if the same supply is certified by National Disaster Management Authority (NDMA) or any Provincial Disaster Management Authority (PDMA). Furthermore, this exemption is available for a period of 90 days w.e.f 30.08.2022 as per SRO 1636(1)2022, issued by FBR on 30.08.2022. Earlier, the tax regulator notified the exemption of sales tax, withholding tax, customs duty, and Federal Excise Duty on the import of all goods received as gifts and relief consignments, donations from foreign governments or organizations used for the relief operations for flood affectees on August 30. While the previous announcement said the exemption would be available on the import of all goods received, today’s clarification confirms that the Sales Tax exemption is applicable on all flood-related goods both imported and locally supplied.