ISLAMABAD: The Federal Board of Revenue has issued draft rules for collection of advance income tax on air tickets from the current fiscal year.

An income tax notification issued here said that the rules will be finalised in the next seven days after receiving feedback from relevant stakeholders.

Every airline, issuing ticket for journey originating from Pakistan, shall collect advance tax at the rate of four per cent on gross amount of international air ticket.

As per draft rules, airlines issuing tickets directly to passengers, either manually or electronically shall charge and collect advance tax at the rates notified in the budget 2014-15.

While in case of tickets issued by non-airlines, the person issuing them will charge and collect advance tax from passengers. These persons will either pay the tax directly to the airline or through IATA.

Tax deducted from passengers by the airlines will have to be deposited with the government within seven days.

In case of non-airlines, the time period for depositing the tax with government is one month.

Published in Dawn, July 26th, 2014