All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
RELEASE
OF FOREIGN EXCHANGE FOR TRAVEL
ABROAD – LEVY OF 5% TAX
Attention
of the Authorized Dealers is invited to F.E.
circular No.70 dated the 19th October, 1993
on the above subject.
2.
It has been brought to our notice that some Authorized Dealers
are not depositing 5% withholding tax on the amounts of
foreign exchange released for travel on the pretext that
the travelers are residents of Northern Areas of the Country
to which the provisions of Income Tax Ordinance does not
apply.
3.
Central Board of Revenue has now clarified that the provisions
of Section 50(SB) of the Income Tax Ordinance are applicable
to the inhabitants of Northern areas as well. Authorized
Dealers are, therefore, advised to ensure collection of
5% tax on the amounts of foreign exchange released for travel
to the residents of Northern Areas also and its timely deposit
into the Government Account.
