Islamabad: The Federal Board of Revenue (FBR) has proposed amendments in the relevant clause of the Income Tax Ordinance to help stop tax evasion via exchange of expensive gifts, reported a news source. The proposed amendment will restrict the gift exchange limit to spouses and blood relations. Expensive gifts given by or to anyone other than spouses or blood relatives will be taxed at 15%.
With the FBR having its amendment proposals floated and the federal government agreeing to this, the new law will be in effect after the parliament approves the finance bill and the President of Pakistan signs it.
According to a spokesperson of the FBR, the board has received reports of a rise in asset transfer and declaration by the individual taxpayers, where taxes worth billions of rupees is being evaded in the form of gift exchange, causing serious damage to the national exchequer.
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