KTBA Advocates Zero-Rated Sales Tax for NPOs in 2025–26 Budget to Boost Public Welfare

• KTBA recommends zero-rated sales tax for NPOs in the 2025-26 budget
• Current sales tax on NPOs burdens organizations providing public welfare services
• KTBA suggests adding a new entry in the Sales Tax Act to exempt NPOs
• This aligns with the Income Tax Ordinance’s treatment of NPOs
• Charitable institutions like hospitals and schools rely on donations but face sales tax expenses
• Current taxation contradicts international agreements requiring aid to be tax-free
• Zero-rating NPOs would allow better use of financial resources and attract more donations
• A tax-free environment for NPOs would enhance public welfare and social development in Pakistan

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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