No VAT on remittance
The National Board of Revenue has made it clear that no VAT is imposed on remittance. Therefore, the expatriate workers have been urged not to pay heed to any rumour.
Speculation runs rife by a syndicate that the government took decision to impose VAT on remittance from 2018-2019 fiscal.
The statement was made through a press release signed by the NBR’s senior information officer Syed A Momen on Wednesday.
The revenue authority thinks that as part of the move of discouraging the country’s remittance inflow through legal channel as well as expanding illegal ‘hundi’ channel, the unscrupulous group is making such rumour, the notification reads.
NBR sources said VAT is only applicable on the supply of goods or services that does not include the foreign remittance inflow.
As per the sub section 2(A), under the section 3 of the VAT law-1991, the remittance is considered as the service-export that is out of the VAT imposition.
The notification also said the country’s economy get no benefit, if the remittance or foreign currency is sent through the illegal channels. So, the NBR administration ensured the expatriate workers not to be confused with the rumour.