Govt extends 2% income tax exemption on diesel and fertilizer imports for another month

The Ministry of Finance and Revenue has announced an extension of the 2% advance income tax exemption on imports of diesel and fertilizers for another month, until May 31.

According to the ministry, the exemption on diesel imports was introduced to help stabilize the prices of basic food items and goods transported by diesel-powered vehicles amid rising global fuel prices and ongoing conflicts in the Middle East. State-owned newspapers announced on April 2 that customs duty, special commodity tax, commercial tax and the 2% advance income tax on diesel imports would be exempted from April 1 to 30. The exemption period has now been extended from May 1 to 31.

As a result, diesel imports with Import Declarations (ID) opened at the Customs Department by May 31 will qualify for the tax exemption.

The ministry also announced that the 2% advance income tax exemption on fertilizer imports, initially granted from April 1 to 30, will likewise be extended through May 31. The measure aims to support the sustainable development of the agricultural sector, which is a key foundation of the country’s economy, and to help reduce production costs for farmers.

Accordingly, fertilizers imported with Import Declarations opened at the Customs Department by May 31 will also be eligible for the tax exemption, the ministry said.