CD Exemption to Envoys, Others: FBR Suffers Rs 3 Billion Revenue Loss – Business & Finance
ISLAMABAD: The government has suffered a loss of revenue of over Rs 3 billion due to duty exemption granted on imports of privileged personnel and diplomats/embassies in 2020-2021.
According to the 2022 tax expenditure report published by the FBR, the loss of income due to goods imported by privileged personnel or by organizations or by any person authorized by the contracting parties, under subsidy agreements amounted to at 1.9 billion rupees.
The beneficiary sector is the privileged personnel or by organizations or by any person authorized by the contracting parties, within the framework of grant agreements (including agreements which cover foreign contributions outside the budget or funds contributed by INGOs registered without no financial liability to the government of Pakistan.
The government suffered a loss of revenue of 985 million rupees on goods imported by various United Nations agencies Agencies under the United Nations during this period.
Exempt Goods Imported by Diplomats/Embassies/Consulates Diplomats/Embassies/Consulates under the Diplomatic and Consular Privileges Act 1972 caused a loss of income of Rs 608 million.
The FBR suffered a loss of income of Rs 139 million due to duty free supply to diplomats, diplomatic missions, privileged persons and privileged organizations which are covered by various acts, orders, rules, regulations and agreements passed by Parliament or issued or approved by the Government of Pakistan.
The FBR suffered a loss of Rs 307 million (sales tax) due to goods imported by various United Nations agencies, diplomats, diplomatic missions, privileged persons and privileged organizations which are covered by various laws and, ordinances, rules and regulations made thereunder. ; and the federal government agreements provided that these goods were subject to a zero rate of duty under the Customs Act of 1969 and the conditions set forth therein. United Nations organizations.
Copyright Business Recorder, 2022