ISLAMABAD: Federal Board of Revenue (FBR) has been empowered to investigate individuals receiving more than Rs10 million in foreign remittances.
Finance Minister Miftah Ismail has said that the Federal Board of Revenue would have the powers to investigate anyone receiving more than Rs10m in foreign remittances. The sender, he said, would also have to disclose the source of his income.
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He expressed his gratitude over the passage of the budget and termed it a step towards economic stability.
The minister said that only tax filers would be allowed to open and maintain foreign currency accounts in the country.
The government also backtracked from its earlier announcement of increasing income tax exemption threshold from Rs400,000 to Rs1.2 million. It levied very nominal tax of Rs1,000 to Rs2,000 per annum on people earning from Rs400,000 to Rs1.2 million.
On April 28, amid ruckus and a walkout by the opposition, Ismail announced Rs5.247 trillion inflationary budget, as its proposed taxation measures outweigh the relief offered to industrialists, agriculturists and salaried persons ahead of elections.
The Rs5.247 trillion budget is Rs493 billion or 10.3 per cent higher than the outgoing fiscal year’s original budget.
The key reason behind 10 per cent increase was that Ismail tried to present a relatively realistic picture There is a Rs1.9 trillion hole in the budget, which is equal to 4.9 per cent of Gross Domestic Product (GDP) and will be filled by taking foreign and domestic loans.
