Diplomats in Pakistan to Get Sales Tax Exemptions

The diplomatic community in Pakistan, United Arab Emirates dignitaries, and Gulf Sheikhdoms would continue to enjoy sales tax exemptions on the import of goods after the announcement of the mini-budget.

The government has decided not to impose sales tax on the import of goods by the diplomats and foreign missions operating in Pakistan, and their status of exemption would not be changed in the upcoming mini-budget.

The sales tax exemption would continue on the goods imported by various agencies of the United Nations, diplomats, diplomatic missions, privileged persons, and privileged organizations, which are covered under various Acts and, Orders, rules and regulations made thereunder; and agreements by the Federal Government, provided that such goods are charged to zero-rate of customs duty under Customs Act, 1969, and the conditions laid therein.

The sales tax exemption would continue on the import of articles of household and personal effects, including vehicles and also the goods for donation to projects established in Pakistan imported by any of the rulers of Gulf Sheikhdoms who is in possession of residential accommodation in Pakistan and goods including vehicles by the United Arab Emirates dignitaries as are listed in column (2) against heading No. 99.05 in column (1) of the First Schedule to the Customs Act, 1969 for their personal use and for donation to welfare projects established in Pakistan subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty on such goods under the said Act.

The status of the sales tax exemption would not be changed on the goods imported or supplied under grants-in-aid for which a specific consent has been obtained from the FBR; supplies and imports under agreements signed by the Government of Pakistan before the 30th June 1996, provided the agreements contained the provision for exemption of tax at the time of signing of the agreement.

The sales tax exemption would continue on the Import of all goods received, in the event of a natural disaster or other catastrophes, as gifts and relief consignments, including goods imported for the President’s Fund for Afghan Refugees, relief goods donated for Afghan Refugees, gifts for President’s Fund for Assistance of Palestine and gifts received by Pakistani organizations from Church World Services or the Catholic Relief Services subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969.

The existing status of the sales tax exemption would not be changed on the educational, scientific, and cultural material imported from a country signatory to the UNESCO Agreement or a country signatory to a bilateral commodity exchange agreement with Pakistan, subject to the same conditions as are envisaged for the purposes of the exemption under the Customs Act, 1969.



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