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 28^th June, 1993, No. 60 dated the 26^th July, 1993 and No.62 dated the 17^th August, 1993 on the above subject.

2. In this connection, we enclose a copy of Notification No.SRO-824(1)/93 dated the 18^th September, 1993 issued by the Central Board of Revenue in suppression of their earlier Notification No.SRO-566(1)/93 dated the 3^rd July, 1993. In terms of their 18^th September Notification following categories of travelers are exempt from payment of 5% tax:-

1. Persons visiting abroad for performance of Hajj and Umrah.
2. Persons visiting holy places at Karbala and Naïf.
3. 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.
4. Employees of the Federal Government, Provincial Governments and members of their families visiting abroad for medical treatment.
5. 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 30^th August, 1993 are meticulously followed while releasing foreign exchange for travel abroad.