FBR seeks dollar procurement data from forex companies

KARACHI: The Federal Board of Revenue (FBR) has issued notices to at least 24 foreign exchange companies, seeking details of people who procured US dollars from them, reported The News.

The notices have been issued in connection with the flight of dollars during the past couple of years, which resulted in depreciation of the local currency, claimed the report.

Sources quoted in the report said that Corporate Regional Tax Office (CRTO) Karachi issued the notices to obtain information under a section (176 of Income Tax Ordinance 2001).

The FBR is seeking information of particularly those who purchased dollars and remitted them abroad for education, health and travelling purposes.

Export of dollars for Pakistani students studying in foreign education institutions is exempted from fund declaration on electronic form under a foreign exchange manual issued by the State Bank of Pakistan. There is, however, $10,000 cap on remitting amount for such purposes.

The FBR sources said it was learnt that several people purchased dollars in large quantity and waiting of further depreciation of the local currency to earn on disparity.

The corporate regional tax office asked the exchange companies to provide details of financial transactions, including name, computerised national identity card and addresses and dates.

The FBR sources quoted in the report said the exchange companies were given one week to provide information of such purchasers in a prescribed manner.

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