Re: Tax Free Living in Pakistan
Of course the tax on import and export is not income tax… but income tax is deducted at import and export stage in pakistan..This income tax is not a tax on import or export, but deducted at import/export stage…
All imports in Pakistan are subject to 5% income tax as per the fbr notification… Income tax!!!
http://www.fbr.gov.pk/newdt/ITaxRules/incometaxrule2008.pdf
- RATIONALIZATION OF WITHHOLDING TAX ON IMPORTS.
[Section 148 - Parts II & IV of Second Schedule]
Previously, advance income tax @ 6% of the value of goods was collected on import (except edible oil) which was;
(i) adjustable in the case of manufacturer; and (ii) final tax liability for commercial importers.
The salient features of amended withholding tax regime under section 148 are:
(i) the standard rate of withholding tax on import has been reduced from 6% to 5% of the value of goods;
(ii) sub-sections (3) and (4) relating to issuance of exemption certificates to manufacturer importers on the basis of payment of withholding tax or advance tax under section 147 during the year, have been omitted.