Islamabad January 27 2022: 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. 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.
