FINANCE ACT 2010

Government of Pakistan

Revenue Division

Federal Board of Revenue

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C.No.1(12)WHT/2010 Islamabad, June 30, 2010.

CIRCULAR NO.06/2010   INCOME TAX

Subject: EXPLANATORY CIRCULAR ON NEWLY INTRODUCED ADVANCE TAX DEDUCTIBLE ON AIR TICKETS UNDER SECTION 236B OF THE INCOME TAX ORDINANCE 2001

Through Finance Act 2010, a new section 236B has been inserted in the Income Tax Ordinance 2001. The new enactment provides that person preparing the air ticket shall charge advance tax on the gross amount of domestic air ticket, at the time of its purchase.

2. Accordingly a new Division-IX has been inserted in Part-IV of the First Schedule to the Income Tax Ordinance 2001, which provides that advance tax under section 236B shall be charged @ 5% of the gross amount of domestic air ticket.

3. This enactment shall be effective from 1st July 2010 onwards.

(MOHAMMED IMTIAZ)

Secretary (Withholding Tax)

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