The government has mandated that all ministries provide an undertaking ensuring that goods received duty-free as gifts or donations from foreign governments will not be sold in the market.
According to the Finance Act 2024, goods received as gifts or donations from foreign governments or organizations by the Federal or Provincial Government, or any public sector organization, must be recommended by the Minister Incharge and approved by the Federal Board of Revenue (FBR).
The concerned ministry must verify the authenticity of these donations and provide an undertaking that the donated goods will be used solely for their intended purpose and not be sold, utilized, or otherwise disposed of.
Tax Exemptions on Humanitarian Donations and Gifts
The Finance Act 2024 also states that sales tax exemptions will apply to all goods received as gifts or relief consignments in the event of a natural disaster or other catastrophes. This includes goods donated by foreign governments or organizations to the Federal or Provincial Governments or any public sector organization.
These exemptions are subject to the recommendations of the Minister Incharge and approval by the FBR. The concerned ministry must verify the authenticity of these donations and provide an undertaking that the goods will be used exclusively for their intended purpose.
