I have a supplier in UAE who used to take cash payments for exports to Pakistan and around Nov 16 they stopped.When I asked they said 8% tax on over the counter cash deposits into banks.
News concerns Pakistani investments in UAE and as far as I know..overseas Pakistanis are not taxed..but not sure of those who live in Pakistan and have business abroad..here is a releated thread...
https://defence.pk/threads/pakistan...a-on-pakistanis-investing-in-property.392421/
A lot of money moves as cash to UAE , gets invested into property and then it recycled back as foreign remittance..totally avioding taxes in Pakistan...Many manufacturers export and collect payments in UAE offshore accounts..recently noose has been tightens on exporters to trace that payments have been made into on-shore Pakistani bank accounts...
Sir, My father owns a business, and we deposit cash on a daily basis, zero tax. Same goes for my Pakistani friends who own business here. Secondly, our bank suggested to us, to stop making cash deposits,(for security reasons, not tax), and they would send G4S, every three days to our office. We are working with them to make it daily.
What your supplier might be doing is making sure he skips on VAT, when it is implemented. Which will be at 5% from 2018, so this 8% is not true. I always believe, take a thief to his home. Call up your suppliers bank, as a customer, and ask them.
As far as Pakistanis are concerned, if they reside outside Pakistan for more than 6 month, they are regarded as non-resident, hence no tax.
Now Pakistanis living in Pakistan, having businesses outside the country, are subject to double taxation treaties, and do not pay tax in Pakistan, on income from abroad. This is a loophole exploited by Pakistanis, that they export money via illegal channels, and then when the money flows back into Pakistan it is clean. Something only Pak Govt can stop if they are serious.
