All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
RELEASE
OF FOREIGN EXCHANGE FOR
TRAVEL ABROAD – LEVY OF 5% TAX
Attention of
Authorized Dealers is invited to F.E.
Circular No.51 dated the 28th June, 1993
in terms of which 5% withholding tax is required to be collected
at the time of release of foreign exchange for travel abroad
except for Hajj and Umrah or official tour.
2. It has since
been clarified by the Revenue Division that advance income
tax @ 5% under sub-section (5B) of Section 50 of the Income
Tax Ordinance, 1979 is not deductible from the foreign exchange
released to the Government employees for medical treatment
abroad.
3. The reference
to Schedule
E4/P4 made in Para 1 of the aforesaid F.E. Circular
may be changed to Schedule
E3/P3.
4. Please bring
the above to the notice of your constituents concerned.
