All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
RELEASE
OF FOREIGN EXCHANGE FOR TRAVEL ABROAD – LEVY OF 5%
TAX
1.
Attention of Authorized Dealers is invited to F.E.
Circulars No.51 dated the 28th June, 1993,
No. 60 dated the 26th July,
1993 and No.62 dated the 17th
August, 1993 on the above subject.
2.
In this connection, we enclose a copy of Notification
No.SRO-824(1)/93 dated the 18th September, 1993
issued by the Central Board of Revenue in suppression of
their earlier Notification No.SRO-566(1)/93 dated the 3rd
July, 1993. In terms of their 18th September
Notification following categories of travelers are exempt
from payment of 5% tax:-
-
Persons
visiting abroad for performance of Hajj and Umrah.
-
Persons
visiting holy places at Karbala and Naïf.
-
Government
Officials visiting abroad on the official duty and produce
a certificate from the competent authority that no ex-Pakistan
leaves has been allowed to them.
-
Employees
of the Federal Government, Provincial Governments and
members of their families visiting abroad for medical
treatment.
-
Members
of Majlis-e-Shoora (parliament) and members of their
families visiting abroad for medical treatment.
As
for category (a) and (b) above, the tax exemption is available
only to those individuals who are visiting Saudi Arabia/Iraq
exclusively for performance of Hajj/Umrah or Ziarat. The
said tax exemption is not available on release of foreign
exchange to persons who intend to visit many countries including
Saudi Arabia/Iraq.
3.
This issues in partial modification of the F.E. Circulars
mentioned in Para 1 above.
4.
It should be ensured that the instructions contained in
F.E. Circular No. 65 dated the 30th
August, 1993 are meticulously followed while releasing
foreign exchange for travel abroad.