FBR abolishes duty, tax on import of Remdesivir drug

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) has exempted duty and taxes on import o Remdesivir drug used for critically ill patients of COVID-19, ARY News reported.

According to details, the FBR issued SRO 557(I)/2020 to exempt income tax on import of finished drug Remdesivir 100mg injection and injectable solution 100 mg vital.

A new section 12D has been inserted to Section 148 of Income Tax Ordinance, 2001 to provide relief on import of the drug, reads the notification.

Similarly, another SRO 556(I) has been issued by the FBR to exempt customs duty, regulatory duty, additional customs duty and sales tax on the import of 61 different kinds of diagnostic support and health safety items including medical equipment/machinery and apparatus such as coronavirus detection kits, surgical masks, face shields, and other medical equipment for a period of three months.

Earlier on June 22, Drug Regulatory Authority of Pakistan (DRAP) had issued registration letters for import and manufacturing of remdesivir used for critically ill patients of COVID-19.

According to the Ministry of National Health Services, on increasing demand, approvals are issued to two importers and 14 local manufacturers.

The spokesperson said COVID-19 drug was approved for emergency use in a special emergency meeting in order to ensure early availability.