Govt exempts import duties on 61 medical goods

Ibn-e-ameer

The government has approved an extension in exemption of taxes and duties on import of 61 medical goods for six months to prevent the covid-19 pandemic.

The National Health Services Regulations and Coordination Division briefed the Cabinet about the case.

M/O National Health Services, Regulations & Coordination, through Revenue Division, had moved a summary.

The Federal Cabinet accorded approval to an exemption from duties on import of 61 goods/items for the prevention and treatment of Covid-19 for a period of three months.

In pursuant to this, the Ministry of Finance and Revenue and FBR issued three SROs, vide No 235(1), 236(1), and 237(1)/2020 dated 20th March 2020, thereby promulgating the exemptions for a period of three months.

It was from the date of issuance of the said notifications i.e., from 20th March to 19th June 2021, with the stipulation that FBR may extend for three months, on the recommendations of M/O NHSR&C, if adverse circumstances related to the COVID-19 pandemic prevails.

On a request of M/ONHSR&C, FBR extended the period of exemptions for another three months i.e., from 20th June to 30th September 2020.

The Ministry of NHSR&C submitted another summary for a further extension of these three SROs till 30-06-2021.

The Federal Cabinet accorded approval to the proposal of the Ministry to extend the exemptions till 30-06-2021. Accordingly, FBR issued three SROs i.e. 1251(1)2020, 1257(1)2020 &:1241(1)2020.

Tariff Policy Board (TPB) held a meeting on 3rd June 2021 under the Chairmanship of Advisor to Prime Minister on Commerce and Investment.

It discussed the agenda.

The Ministry of NHSR&C and DRAP argued to extend the exemptions of duties and taxes on import of the Covid-related items for the next six months.

However, the government had extended the exemption for the customs duties only till 31-12-2021.

The Ministry of National Health Services, Regulations Coordination was of the view that due to the low production capacity of the local industry and the continuing pandemic situation, the government may extend extension for exemption in Sales Tax and Income tax.

The Cabinet considered the summary titled ‘Approval for Extension of Exemption of Taxes & Duties on Import of 61 Items for the Prevention& Treatment of Covid-19’ dated 30th July 2021, the National Health Services Regulations and Coordination Division had submitted and approved exemptions in sales tax and income duties for another six months.