No Tax on Overseas Pakistan Gifts Soon

The government has decided to remove income withholding tax on gifts sent by the overseas Pakistanis to friends and families.

At present, the government levies 6 per cent withholding tax on these gifts. Previously gifts below the cost of Rs 1,000 were not taxable. The government raised the limit of non-taxable gifts to Rs 10,000, while the duties and GST were not applicable. However, the Central Board of Revenue has been receiving representations on the Withholding Tax levy, pressing for its removal.

The tax authorities have also been in favour of removal of the tax as items not GST taxable and dutiable, need not be Withholding Taxable on arrival from abroad. For the purpose of informing tax authorities at the airport package-arrival and post office Customs stations, the CBR is expected to issue a notification confirming removal of the tax on these gifts…