Sales tax exempted on supply of flood-related goods for 90 days: FBR clarifies

September 06, 2022 (MLN): Federal Board of Revenue (FBR) has clarified that the imported and local supplies of goods needed for flood relief activity as certified by the NDMA or PDMA have been exempted from the whole of sales tax.

This exemption is available for a period of 90 days with effect from August 30, 2022.  

To provide immediate relief to the flood affectees, on August 30, 2022,  the federal government through its cabinet decision directed that both import and supply of the goods verified by the NDMA or a PDMA may be exempted from sales tax.

Consequently SRO 1636(i)2022 was issued by the board to give effect to the subject decision.

However, the board after receiving various queries, explained that the supply of flood-related goods both imported and locally supplied/sold are exempted for 90 days.

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