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Govt Legalizes Non-Banking Remittance Channels

The government has given legal cover to the foreign remittances through money service bureaus (MCBs), exchange companies (ECs), and money transfer operators (MTOs), which would be considered as foreign exchange remitted from outside Pakistan through normal banking channels.

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Through the Tax Laws (Third Amendment) Ordinance, 2021, the Federal Board of Revenue (FBR) has clarified that the remittance through money service bureaus (MCBs), exchange companies (ECs), and money transfer operators (MTOs) such as Western Union, Money Gram, and Ria Finance or other similar entities shall be deemed to constitute foreign exchange remitted from outside Pakistan through normal banking channels as delineated under this sub-section.

The Federal Board of Revenue (FBR) or Commissioner Inland Revenue would have full authority to restore the mobile phones, mobile phone SMS, and connections of electricity and gas in cases where a person was not liable to file an income tax return.

Under the Tax Laws (Third Amendment) Ordinance, 2021, the Board or the Commissioner, having jurisdiction over the person mentioned in the income tax general order, may order restoration of mobile phones, mobile phone SMS, and connections of electricity and gas in cases where he is satisfied that the return has been filed or the person was not liable to file the return under the provisions of the Income Tax Ordinance, 2001.

Tax Laws (Third Amendment) Ordinance, 2021, has specified that there shall be collected additional advance tax at the rates given in Division IV of Part-IV of the First Schedule from professionals not appearing on ATL and operating from residential premises having domestic electric connections from electricity distribution companies.

For the purposes of this sub-section professionals include accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT professionals, tutors, trainers, and other persons engaged in the provision of services, it added.

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