FBR Grants Tax Exemptions on Donations in PM’s Flood Relief Fund

The Federal Board of Revenue (FBR) has granted income tax and federal excise duty exemptions on any donation received in Prime Minister’s Flood Relief Fund. According to the S.R.O. 1589(I)12022 issued by the FBR here on Tuesday, in the exercise of the 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. Under S.R.O. 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 with effect from August 5, 2022. The provisions of section 151 (tax on profit on debt) will not apply to the donations. The provisions of section 236 (advance tax on telephone and internet users) will also not apply to the donations through SMS.