How Avoid Tax On Airport | Foreign Exchange Remittance Card

By
Malik
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2720
  • Have You heard about Foreign Exchange Remittance card before ( FERC )?
  • Are you an overseas Pakistani ?
  • Worry about new rules of Pakistan Government about tax and duty on Airports?
  • Don’t You want to pay this new duty while taking mobile phones as gifts for yout family?
  • Are You pissed off of this new rule?
  • Are you sending money to Pakistan legally ( By banking channels or exchanges)?
  • How much money you sent in past one year?
Foreign exchange remittance card FERC
Foreign exchange remittance card FERC. Photo from Overseas Pakistani foundation.

I will answer your all questions and will tell you the right way to deal with this new issue. Just keep Reading.

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New Rule for Overseas Pakistani ( Tax on mobile phones)

As you all heard that, government of Pakistan just made new rules for those who are travelling into Pakistan from any foreign country. According to new rule,  anyone who arrives at Pakistani Airports will have to certain things to keep his phone running. But also for those new phones he is bringing with him for friends and family.




Their will be only one phone a person is allow to take in without any tax. If he is carrying more than one phone than he will have to pay duty on the Airport. But the normal duty will be applicable for only four extra phones.

If amount exceeds from four, then there will be heavy trading taxes. But even for 4 phones amount of duty is not small. Not sure yet but many saying it is around 20 to 40 per cent of the price of the phone. That becomes too much even. There are 9.4 million Pakistani working overseas. Most of them have small salaries. They have to save much to buy gifts on their vacations. 20 or 30 percent of the phone price is an huge burden for a person earning 400 to 800 USD a month.

Lists circulated on Social media. In those lists FBR issued an estimated price for specific phone models. Duty will be charged accordingly.

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List of Estimated price I will attach below the Article.

Coming to the Point,  how to avoid This tax if government don’t change its decision?

There is a Simple way to save yourself from this duty. But if you are sending money by a legal way. Simply go to Pakistani Embassy and Apply for Foreign exchange remittance card or FERC as soon as possible.

What is Foreign exchange remittance card FERC ?

Remittances by Overseas Pakistanis, through normal banking channels, are a vital source of balance of payments support for the country. Funds channeled through Hundi or other means bypass legal conduits and deprive the country of much needed support. Cognizant of the problem of diminishing home remittances the government has initiated concerted program to facilitate those Overseas Pakistanis who remit money through normal banking channels. Towards this end, a special package of Foreign Exchange Remittance Card (FERC) has been introduced by the Ministry of Finance in September 2001 to facilitate the overseas Pakistanis community. OPF has been nominated as the implementation authority.




Overseas Pakistanis remitting foreign currency equivalent to US$2500 to US$ 50,000 per annum are entitled to the following incentives; 

  • Five categories of remittance cards as per amount remitted.
  • Free Issuance and Renewal of passport on urgent basis.
  • Separate Counters for special handling at arrival and departure lounges at all International Airports in Pakistan.
  • Duty credit can also be utilized for seven items with fixed duty i.e., television, deep freezer, refrigerator, microwave oven, cooking range, washing machine and air conditioner.

Duty Credit in Pak. Rupees as per category of remittance card. 

Foreign exchange remittance card FERC
Eligibility criteria for each card: Source FERC

Admissibility:

  • The duty credit is admissible to a Pakistani national holding Foreign Exchange Remittance Card (FERC) once during validity of card.
  • The duty credit can be utilized for the accompanied, unaccompanied baggage or any purchase from any duty free shop.
  • The duty credit under this scheme is not utilizable on import of vehicles. Utilization of duty credit is endorsed by the Customs on the passport of an FERC holder. The Incentives are available for one year from the date of issuance of remittance cards.

Eligibility Criteria:

Following is the Eligibility Criteria for Remittance Card.

  • The applicant should be a Non-Resident Pakistani.
  • Remitted amount in Foreign Currency should be equivalent to US$ as per table below for issuance of Remittance Cards.




Foreign exchange remittance card FERC
Photo by Overseas Pakistani foundation.

Remittance is acceptable which has been made to a Pak Rupee Account or which has been converted into Pak Rupee from a Foreign Currency Account through bank.

FOLLOWING ARE NOT ELIGIBLE. 

  • Infant, Minors and persons below the age of 18 year are not entitled for FERC.
  • Student is not entitled for FERC.
  • Amount remitted in Foreign Currency Account in Pakistan and not converted/encashed into Pak Rupee Account through the bank.
  • Receipts of amount exchanged from Money Exchange Companies are not acceptable.
  • ATM Receipts without the identification of the Remitter’s name.

How To Apply for Foreign exchange remittance card FERC. 

  • The application form can be obtained from OPF website, Pakistan Missions abroad, OPF Head Office Islamabad and through Regional Offices located at Karachi, Quetta, Lahore, Multan, Peshawar and Mirpur (AJ&K).
  • Pakistan Mission dispatch the application form to OPF Head Office Islamabad for issuance of FER Card after proper verification.
  • OPF issues the card and dispatch to concerned Pakistan Mission for onward deliverance to the applicants.
  • Card will not be dispatched to the applicant abroad.
  • One year back receipts of remitted amount will be accepted from the date of application for issuance of FER Card.

Response of Pakistani People over New Tax

Some Pakistani specially living inside Pakistan and some die heart supporters are appreciating this step. But many working abroad are not happy. Even those who were supporters of PTI but working with low salaries are criticising the government. Many social media activists also demanding the Government to stop this new tax.

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