The government has instructed all ministries to provide undertakings ensuring that duty and tax-free goods received as gifts or donations from foreign entities are not sold in the market.
The Finance Act 2024 stipulates that goods received as gifts or donations from foreign governments or organizations by federal or provincial governments, or any public sector organization, must have the recommendation of the Minister Incharge and concurrence of the Federal Board of Revenue (FBR).
The Act requires that the concerned ministry verify the authenticity of such cases and provide an undertaking that the donated goods will not be sold, used, or disposed of for any purpose other than the one for which they were imported.
Sales tax exemptions will apply to all goods received as gifts and relief consignments in the event of a natural disaster or other catastrophe, or any goods received as gifts or donations from foreign governments or organizations by federal or provincial governments or any public sector organization.
The exemption is subject to the recommendation of the Minister Incharge and the concurrence of the FBR, with the condition that the concerned ministry must verify the genuineness of such cases and provide an undertaking that the donated goods will not be sold, used, or disposed of for purposes other than those intended.
