Tax Laws (Third Amend) Ord: Remittances via MCBs, ECs and MTOs given legal cover

ISLAMABAD: The government has given legal cover to foreign remittances through Money Service Bureaus (MCBs), Exchange Companies (ECs) and Money Transfer Operators (MTOs), which would be considered as foreign exchange remitted from outside Pakistan through normal banking channels.

Through the Tax Laws (Third Amendment) Ordinance, 2021, the Federal Board of Revenue (FBR) has clarified that the remittance through MCBs, ECs and MTOs such as Western Union, Money Gram and Ria Finance or other like entities shall be deemed to constitute foreign exchange remitted from outside Pakistan through normal banking channels as delineated under this sub-section.

The FBR or Commissioner Inland Revenue would have full authority to restore mobile phones, mobile phone SMS and connections of electricity and gas, in cases where a person was not liable to file income tax return.

Foreign remittances: FBR accepts SBP’s stance

Under the Tax Laws (Third Amendment) Ordinance, 2021, the Board or the Commissioner having jurisdiction over the person mentioned in the income tax general order may order restoration of mobile phones, mobile phone SMS and connections of electricity and gas, in cases where he is satisfied that the return has been filed; or person was not liable to file return under the provisions of the Income Tax Ordinance 2001.

Tax Laws (Third Amendment) Ordinance, 2021 has specified that there shall be collected additional advance tax at the rates given in the Division IV of Part-IV of the First Schedule from professionals not appearing on ATL and operating from residential premises having domestic electric connections from electricity distribution companies. For the purposes of this sub-section professionals include accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT professionals, tutors, trainers and other persons engaged in provision of services, it added.

Copyright Business Recorder, 2021