As a consequence of the amendments made by the Government of Pakistan in the Special U.S Dollar Bonds Rules,1998, the following amendments may be made in F.E Circular No.42 dated the 21st July, 1998 :-

1. The words "US Dollar Saving Bonds" wherever appearing may be changed to "Special US Dollar Bonds".

 

 

2. In Paragraph 7 the words "official exchange rate" may be substituted with the following:-
   
         "State Bank of Pakistan official buying rate"

 

 

3. Paragraph 8 & 9 may be substituted with the following :-
   
   "Paragraph 8
   
   (1) The bonds purchased under these rules shall be exempt from the levy of wealth tax for which such bonds are held by the original registered holder and,in case of a subsequent registered holder, for the unexpired period of maturity of such bonds.
   
   (2) Assets created out of the sale proceeds of the bonds by the original registered holder shall be exempt from levy of wealth tax for a period of six years reckoned from the year in which such bonds were converted from foreign currency accounts or deposits and the following five years.
   
   (3) The immunities available to the foreign currency accounts under the protection of Economic Reforms Act, 1992 (XII of 1992), shall apply to the bonds issued under these rules"

 

 

"Paragraph 9

The investment made in these bonds from the foreign currency accounts or foreign currency deposits by the original registered holders under the Special U.S Dollar Bonds Rules, 1998 shall be exempt from income tax.Exemption from levy of income tax on its profit and deduction of zakat shall also be available to registered holders of  these bonds for as long as these bonds are held by them."

 

 

4. The words "upto 30-06-1998" appearing in para 14 are deleted.