The Federal Board of Revenue (FBR) is measuring up a new set of rules to restrict foreign currency outflow, such as foreign currency declarations at customs stations, airports, and seaports, among other things.

According to Business Recorder, the tax regulator has decided to document the financial operations of foreign currency dealers/exchange businesses. One of the options being considered is for travelers to declare their currency notes. It is noteworthy that the government has permitted Pakistanis, both residents, and non-residents, to take up to $10,000 every visit. However, passengers taking more than $10,000 must make a declaration.

With this change, the tax machinery aims to mandate the declaration of all foreign cash without exceptions for all in-bound and out-bound passengers.

The plan is to make it obligatory for a passenger taking a few hundred dollars or more to submit a declaration, regardless of the amount. The declaration would be made via an online system which would, in turn, keep the FBR informed about currency disclosures made across the country in real-time.

The FBR also wants to know the real worth of declared foreign currency via land customs posts, trains, air travel, and seaports. Moreover, it has chosen to document foreign exchange dealers’/exchange businesses’ transactions and has urged them to integrate with the FBR’s online system.

The FBR will also ensure that a customer of an integrated enterprise will have access to relevant facilities online to verify and ensure that the invoice or bill issued to him/her has been recorded with the tax regulator, and in the event of non-verification, he/she may upload the image of the invoice or bill.

On the flip side, foreign exchange dealers and firms will install fiscal electronic devices and software that have been approved by the FBR and are available on its website with comprehensive instructions for installation, setup, and integration.

It is worth mentioning that the dealers/firms will inform the FBR of any enterprise or source through which they intend to conduct business and shall register each point of sale (POS) to activate the integration with the required information. The tax regulator has asserted that no sale or service shall be considered unless it is recorded by a legitimate electronic fiscal device (EFD) and at least one POS that meets the FBR’s conditions.

Source: Pro Pakistani