Govt Imposes 1% Advance Tax on All Exporters

The exporters of goods, whether direct or indirect exporters, shall be subject to advance tax at 1 percent of the realization of the foreign exchange proceeds on account of certain payments. According to the details of the amended Finance Bill 2024 issued by Tola & Tola / Tola Associates, the Amended Bill has proposed to add a new sub-Section 6C in Section 147. The amendments are: (6C) Notwithstanding anything contained in this Ordinance, the persons specified in sub-section (1), (3), (3A), (3B), and (3C) of section 154 shall, at the time of realization of foreign exchange proceeds, or realization of the proceeds on account of sale of goods, or export of goods, or at the time of making payment to an indirect exporter, or clearing of goods exported, respectively, deduct or collect, as the case may be, advance income tax under this section at the rate of one percent of such foreign exchange proceeds, or export proceeds, or exports, or payment, in addition to tax collectible or deductible under section 154 of this Ordinance. The upshot of the aforesaid amendment proposed through the Amended Bill is that exporters of goods, whether direct or indirect exporters, shall be subject to advance tax at 1 percent of the realization of the foreign exchange proceeds on account of the aforestated payments, explanation added.