FBR abolishes taxes on import of coronavirus-related medical equipment

KARACHI: Federal Board of Revenue (FBR) on Friday announced a major relief on import of medical equipment and machines aimed at tackling the spread of coronavirus pandemic, ARY NEWS reported.

According to the FBR spokesman, the tax collection body issued three statutory regulatory orders (SROs) to announce a relief on the imports of virus-related medical equipment.

The tax authority announced to abolish sales tax, income tax, customs duty and regulatory duty for three months on import of the machinery and other material needed to tackle the spread of the virus.

The decision came after Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh on Friday said that Pakistan’s economy was on the stability path but the ongoing coronavirus has affected it likewise it caused losses to the global economy.

“Global losses due to the spread of the virus have reached upto US$300 billion,” he said.

The adviser said that they have devised a three-pronged strategy to deal with the ongoing situation. “Although our exports might suffer due to the ongoing crisis, however, the oil prices will also go down bringing a relief in payments,” he said.

Hafeez Shaikh said that initially they have decided to import the medical equipment including ventilators needed to tackle the virus from international markets. “We also want to give a relief package to the masses having a less impact on the economy, mainly comprising of tax exemptions and subsidies,” he said.

The adviser said that a joint strategy was needed to move forward in the ongoing situation as they plan to expedite development works to improve employment prospects in the country.

He said that they would mull over tax exemption and subsidies on products as medical equipment currently tops their priority.