A meeting of the Standing Committee on Finance was held under the chairmanship of Senator Saleem Mandviwala at Parliament House today where the committee members reviewed and made recommendations on the Finance Bill 2023.
The committee considered and approved another budget proposal to allow overseas Pakistanis to bring in up to $100,000 from abroad without disclosing the source of income per tax year.
Securities and Exchange Commission of Pakistan (SECP) Commissioner Abdul Rehman Warraich informed the committee that the Federal Board of Revenue (FBR) cannot ask for the source of investment or income under section 111 of the Income Tax Ordinance 2001. Similarly, the FBR cannot probe tax evasion on the basis of the source of remittance under section 111 of the Ordinance 2001.
He stated that under the Finance Bill 2023, the government has enhanced the monetary limit of foreign remittance remitted from outside Pakistan from Rs. 5 million to the equivalent of $100,000 for the purpose of section 111(4) which places a bar on asking nature and source of unexplained income/assets.
However, there are more chances of money laundering after an increase in this limit which cannot be probed by the tax officials of the FBR. The FBR also cannot ask about the source of the money whether the amount has been earned through legitimate means or not, SECP Commissioner stated.
However, the committee approved the aforesaid proposal of the Finance Bill 2023.
Meanwhile, the committee members rejected the proposal to levy up to 50 percent tax on sectors earning windfall profits under clause 99D of the Finance Bill.
Super Tax Slabs on High Income
Tax officials briefed the committee on revised Super Tax slabs for the fiscal year 2023-24 for individuals with higher incomes. They explained that FBR proposed a super tax slab of 10 percent on individuals earning above Rs. 500 million and an 8 percent tax rate on those with income above Rs. 400 million.
After a detailed review of the subject matter, the committee recommended the imposition of a 7 percent Super Tax on income above Rs. 500 million, and 6 percent on individuals earning over Rs. 400 million.
Tax on Cash Withdrawals for Non-Filers
The committee discussed the budget proposal to impose a flat 0.6 percent tax on citizens not appearing on the Federal Board of Revenue’s (FBR) Active Taxpayer List (ATL)
FBR officials informed the committee that the purpose of this proposed regulation was to help document the economy. This tax would be collected from non-ATL individuals and essentially attract more individuals into the tax net.
what about other currencies that were overseas in Pakistan can they bring those currencies too