Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Outbound flows from foreign currency accounts to be examined by FBR
06-13-2008, 06:12 AM
Post: #1
Outbound flows from foreign currency accounts to be examined by FBR
RECORDER REPORT
KARACHI (June 13 2008): In order to check the menace of under invoicing of imported goods, all those sending remittances from foreign currency accounts will be required to file an 'M' Form with the State Bank of Pakistan certifying the reason for the remittance being undertaken. This change is meant to check rampant under-invoicing of imported goods.

It is said that importers of goods, specially from China, remit the under invoiced amount through letter of credit opened by a bank and the balance amount is remitted through forex accounts, after purchase of foreign exchange from a money changer or an exchange company and depositing the same in individual forex accounts.

FBR in consultation with SBP has devised a mechanism that seeks to disallow non-deduction of withholding tax on foreign exchange paid to non-residents for import of goods, unless a certificate from tax department, is obtained whenever the title of goods, passes outside Pakistan. To obtain the exemption certificate filing of supporting import documents will now be mandatory.

This will ensure proper utilisation of foreign currency for import of goods, says FBR. Further, it will check misuse of foreign currency purchased from open market and its remittances abroad under the garb of imports or otherwise.

Payments to non-residents including remittance from foreign currency account and exchange companies applicable to such transactions would also need to provide on explanation for the remittance.

In order to overcome operational difficulties for enforcement against misuse of telegraphic transfers for under invoicing of imports, the overriding clause of Protection of Economic Reform Act (PERA) 1992 over Foreign Exchange Regulation Act (FERA) 1947 to this extent is being deleted from the purview of section 3 of PERA 1992.

The Finance Bill also empowers SBP to impose penalties on banks and exchange companies for violation. Hitherto, SBP could only suspend or cancel the licence. SBP would announce the penalty tariff against various violations in due course

http://www.brecorder.com/index.php?id=754679
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  GOVT HAS DECIDED LIMIT THE AMOUNT OF FOREIGN CURRENCY PURCHASED PER PERSON LRE-Azan 0 773 11-08-2022 06:46 PM
Last Post: LRE-Azan
  Initiatives taken to attract foreign investment: PM Salman 0 3,573 02-27-2014 06:47 PM
Last Post: Salman
  Irregularities Unearthed In CDA’s Accounts Salman 0 6,754 09-04-2013 08:38 PM
Last Post: Salman
  DHA accounts partly unfrozen Salman 0 7,506 08-03-2013 12:55 PM
Last Post: Salman
  SC allows DHA to draw Rs 52m from frozen accounts Salman 0 7,883 08-02-2013 03:46 PM
Last Post: Salman
  Foreign aid needs to be given up to become independent: CM Lahore_Real_Estate 0 2,800 05-17-2011 11:35 AM
Last Post: Lahore_Real_Estate
  Interior Ministry fails to reconcile Rs 515 million accounts Lahore_Real_Estate 0 3,501 12-13-2010 12:58 PM
Last Post: Lahore_Real_Estate
  Preacher, Teacher & Public Accounts Committee LRE 0 3,593 06-22-2010 07:17 PM
Last Post: LRE
  Public Accounts Committee in Action LRE 0 3,622 04-30-2010 09:56 AM
Last Post: LRE
  Deals with foreign builders Lahore_Real_Estate 0 2,694 12-14-2009 12:21 PM
Last Post: Lahore_Real_Estate
  No plan to freeze foreign accounts of the NRO beneficiaries LahoreEstate 0 3,296 11-22-2009 05:51 AM
Last Post: LahoreEstate
  WAPDA and PEPCO Massive irregularities detected in accounts LahoreEstate 0 4,322 10-18-2009 05:12 AM
Last Post: LahoreEstate
  UN calls for new reserve currency to end dollar 'privilege' Naveed Yaseen 0 3,284 10-07-2009 05:22 AM
Last Post: Naveed Yaseen
  The addiction of foreign aid (by Dr Safdar Mehmood) Naveed Yaseen 0 2,746 10-03-2009 07:54 AM
Last Post: Naveed Yaseen
  PQA expects $1.22bn foreign investment LahoreEstate 0 2,826 07-05-2009 04:48 AM
Last Post: LahoreEstate
  Foreign travel statistics of Pakistanis Naveed Yaseen 0 2,527 06-26-2009 08:40 AM
Last Post: Naveed Yaseen
  Gulf single currency unlikely before 2013 LRE 0 2,681 06-07-2009 11:42 AM
Last Post: LRE
  Bajaur: Three foreign terrorists held Naveed Yaseen 0 2,349 06-06-2009 07:32 AM
Last Post: Naveed Yaseen
  from indian foreign minister to Pak foreign minister LRE 0 4,092 06-02-2009 09:30 AM
Last Post: LRE
  Saudi Arabia freezes billionaire’s accounts LahoreEstate 0 3,104 06-01-2009 05:17 AM
Last Post: LahoreEstate

Forum Jump:


User(s) browsing this thread: 1 Guest(s)