Exporters of goods, whether direct or indirect, are required to pay an advance tax equal to 1% of the foreign exchange proceeds realized after making specific payments.
As per the information provided by Tola & Tola / Tola Associates, the Finance Bill in Pakistan 2024 has been changed to include a new sub-Section 6C in Section 147.
The changes are as follows:
(6C) In spite of everything in this Ordinance, the individuals listed in section 154 sub-sections (1), (3), (3A), (3B), and (3C) shall, when realizing foreign exchange proceeds, realizing proceeds from the sale or export of goods, or when making a payment to an indirect exporter, or export of goods, or at the time of paying an indirect exporter, or clearing exported goods, as the case may be, deduct or collect, in addition to tax collectible or deductible under section 154 of this Ordinance, advance income tax under this section at the rate of one percent of such foreign exchange proceeds, or export proceeds, or exports, or payment.
As a result of the previously mentioned amendment, which is included in the Amended Bill, exporters of products, whether direct or indirect, will pay advance tax equal to 1% of the foreign exchange proceeds realized as a result of the previously mentioned payments, with an additional explanation.
