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Budget FY21: VAT on Covid-19 testing kits proposed to be exempted

  • Published at 04:17 pm June 11th, 2020
Photo: Bigstock

No VAT on locally made PPEs, surgical masks

Finance Minister AHM Mustafa Kamal on Thursday proposed to exempt Value Added Tax (VAT) on coronavirus test kits to support activities related to detection and prevention of Covid-19.

The minister proposed the exemption on import, manufacturing, and trading stages of the testing kits.

“Alongside, exemption has also been proposed at the manufacturing and trading stages for locally manufactured personal protective equipment (PPEs) and surgical masks [including face mask] to protect health workers,” the minister said in his budget speech placed in parliament on Thursday.

  • No VAT on Covid-19 kits on any stage

  • Locally manufactured PPEs, surgical mask gets VAT exemption

  • No VAT on Covid-19 medicine import

  • No VAT on meditation services

He also proposed to exempt VAT on COVID-19 medicines at the import, manufacturing and trading stages, and proposed to continue exemption on meditation service for one more year to keep mental health sound during the pandemic.