The Federal Board of Revenue (FBR) has announced significant relief for overseas Pakistanis by providing a procedure for granting them tax exemption on property purchases in Pakistan. The decision was reported on Sunday.
According to the report, with the abolition of Sections 236 and 236-K, the physical presence of overseas Pakistanis is no longer required. Now, overseas Pakistanis can generate a PSID code on their own and send it via email to the relevant chief commissioner of Inland Revenue.
The relevant commissioner will then verify the non-resident status of the applicant using the NICOP and approve the exemption on merit. Once approved, overseas Pakistanis can benefit from tax exemptions worth millions of rupees when purchasing property in Pakistan.
It is also worth noting that Federal Tax Ombudsman (FTO) Dr. Asif Mehmood Jah had already directed the FBR to refund taxes to overseas Pakistanis. In line with this, FBR has instructed all chief commissioners of Inland Revenue to process the cases of overseas Pakistanis in a single day. The FBR has also sent a letter to all chief commissioners to facilitate this process.
