Foreign exchange companies: FBR explains WHT matter

ISLAMABAD: The Federal Board of Revenue (FBR) Wednesday clarified that the notices were issued only to those foreign exchange companies where neither the proof of payment of tax was available nor the withholding agents had got any exemption certificates.

According to a clarification issued by the FBR here on Wednesday.”, Clarifying its position and legal stance, FBR has stated that services provided by foreign exchange dealers in provinces are not chargeable to Federal Excise under Federal Excise Act, 2005.

Explaining the matter with regard to withholding tax on foreign exchange remitted out of Pakistan, FBR has clarified that notices have been issued only to those foreign exchange companies wherein neither the proof of payment of tax was available nor the withholding agents had got any exemption certificate issued under the relevant provisions of law, by the concerned Commissioner.

The FBR has taken a position that these notices are within the framework of law and the same will be enforced.

Furthermore, FBR strongly believes in a transparent and reliable tax system which maximizes revenue potential, minimizes revenue leakages through the use of technology and, thus, ensures ease of doing business.

To realize this vision, FBR has taken a number of innovative measures based on digital interventions in the recent past which have translated into sizeable growth in revenues. Therefore, the impression portrayed is not only out of the context but also against the ongoing drive for tax compliance by FBR, FBR added.

Copyright Business Recorder, 2022