ISLAMABAD: The federal government, through Finance Bill 2015-16, has imposed five per cent advance tax on money remitted abroad for education purposes.
The government was already charging 5 percent tax on fee exceeding Rs200,000 for those who are studying in local educational institutions.
Sources said that the Federal Board of Revenue (FBR) obtained figures and data from the State Bank of Pakistan regarding those who were sending money abroad for educating their children.
The Finance Bill 2015-16 also proposed powers for the tax machinery to sign bilateral or multilateral agreements with other countries for exchange of information. This proposed amendment will enable the tax authorities to exchange information from Dubai and Switzerland where influential have parked their dirty untaxed money.
