ISLAMABAD: The exporters of goods whether direct or indirect exporters shall be subject to advance tax at one percent of the realization of the foreign exchange proceeds on account of certain payments.

According to the details of the amended Finance Bill 2024 issued by Tola & Tola / Tola Associates, the Amended Bill has proposed to add a new sub-Section 6C in Section 147, as follows:

(6C) Notwithstanding anything contained in this Ordinance, the persons specified in sub-section (1), (3), (3A), (3B) and (3C) of section 154 shall, at the time of realization of foreign exchange proceeds, or realization of the proceeds on account of sale of goods, or export of goods, or at the time of making payment to an indirect exporter, or clearing of goods exported, respectively, deduct or collect, as the case may be, advance income tax under this section at the rate of one percent of such foreign exchange proceeds, or export proceeds, or exports, or payment, in addition to tax collectable or deductible under section 154 of this Ordinance.

Bodies representing exporters flay taxation plans

The upshot of the aforesaid amendment proposed through the Amended Bill is that exporter of goods, whether direct or indirect exporters, shall be subject to advance tax at 1% of the realization of the foreign exchange proceeds on account of the aforestated payments, details of the new provision added.

Copyright Business Recorder, 2024