ISLAMABAD - The Federal Board of Revenue (FBR) has given exemption to the foreign diplomats/ missions in Pakistan from the advance income tax on the purchase of air tickets, as it is applicable on Pakistanis in the budget 2014-15.

“Yes, the foreign diplomats and diplomatic missions are exempted from the advance income tax on the purchase of international air-tickets, as there tax assessment was not conducted in Pakistan”, said Acting Chairman Federal Board of Revenue Shahid Hussain Asad while talking to The Nation. He informed that four percent advance tax is applicable on Pakistanis who purchased international air tickets in the country.

The FBR on Friday issued a notification regarding advance tax on air tickets, as announced in the budget 2014-15. According to the notification issued here, the airlines issuing tickets directly to passengers, wither manually or electronically, shall charge and collect advance tax.  Meanwhile, where the tickets are issued by persons, other than the airlines, and the person issuing tickets on the behalf of the airlines, are charging and collecting advance tax from the passengers and making payment of tax to the airlines directly, or through any other entity authorised in that behalf, the tax so collected by the airlines from such person shall be paid.

The notification further stated that tax collected by the airlines should be paid within seven days from the date when the tax from persons is received, but not later than one month from the date when such tax was collected from the passengers. Meanwhile, every airline issuing international air tickets shall make adequate arrangements for collection of the tax under this rule from the persons issuing tickets on its behalf or through electronic means, and in case of default, the said tax shall be collected from the airlines, without prejudice to any other liability, which it may incur under the ordinance. 

Meanwhile, the FBR has also issued another notification of amending in income tax ordinance 2001. According to the notification, the FBR would publish Active Taxpayers List (ATL) of the ongoing financial year 2013-14 on its web portal. The ATL shall be valid for the period, beginning on the date of publish and ending on the last day of February. The ATL shall be updated on fifteenth day of every month. 

Similarly, the FBR would also issue Taxpayers Card by the first of March for a person who has filed a return section 114 or a statement under section 115 for the tax year for which the last date as specified in section 118 falls during immediately preceding twelve months.

The tax card shall be valid for one year, beginning of the date of issue and ending on last day of February. The Board may authorise National Database and Registration Authority (NADRA) for the purpose of printing and issuing taxpayers cards.