Pakistan Wont Tax Remittance
May 24, 2015 Taxation in Pakistan
ISLAMABAD – Pakistan will not enact a tax on remittance coming from overseas into the country, and, in fact, will attempt to make the process easier and cheaper.
On May 23rd the Finance Minister of Pakistan Ishaq Dar confirmed that the country would not seethe imposition of a tax on any remittance coming into the country.
The Minister’s words came the day after the Federal Board of Revenue Chairman Tariq Bajwa claimed that foreign remittance needs to be taxed in order to stop remittance being used in order to launder money.
According to the Ishaq Dar, the remittance of money by Pakistanis sending money back to their family is a “…very stable source of foreign exchange flows into the country and represent the hard work of millions of Pakistanis living abroad and their commitment for development of Pakistan.”
He added that the certainty that no taxes will be levied on remittance was initially set to be announced as part of the annual budget plan, but the words of the Chairman of the Federal Board of Revenue has hastened the announcement.
Further, he added that the government is working to increase amount of remittance coming into the country by easing the process and reducing the associated cost.
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