So finally a professional decision comes from the government of Pakistan as we have found out from a trusted source that the government have removed import duties (taxes) on the import of 61 different kinds of Diagnostic Support and health safety items in a bid to reduce the rising prices in the domestic market. The step taken by the Federal Board of Pakistan and it has been taken in order to effectively deal with the recent outbreak of the coronavirus (COVID19) pandemic in Pakistan. Items which have been exempted from the tax bracket, include medical equipment/machinery and apparatus like coronavirus detection kits, surgical masks, multimode ventilator with an air compressor, face shields, and other medical equipment for a period of 3 months which may be increased if the virus has not been effectively countered.
As per the S.R.O.235(1)/2020 issued by the FBR, in the exercise of the powers conferred by section 19 of the Customs Act 1969 (IV) of 1969, the Federal Government have officially exempted these items from the tax bracket of customs duty, regulatory duty and additional customs duty, for a period of three months from the date of issuance of this notification. It should also be noted that the period of three months may be extended for another three months by the board on the recommendation of the Ministry of National Health Services Regulation & Coordination (MNHSR&C) if adverse circumstances related to the COVID19 pandemic prevail.
Under the SRO.237(I)/2020, sales tax exemption will be applicable to the import and subsequent supply of 61 items from payment of sales tax for a period of three months starting from the date (March 20) of issuance of this notification. Through S.R.O. 23 (1)/2020 issued which was issued on Friday, in the exercise of powers conferred under sub-section (2) of section 53 of the Income Tax Ordinance, 2001, the Federal Government has further amended the Second Schedule to the Income Tax Ordinance. The provisions of section 148 shall not apply to the import of the following goods for a period of three months starting from the date of issuance of the notification.
