NBR waives 15 per cent VAT on indenting agents

The National Board of Revenue (NBR) has waived 15 per cent VAT on indenting agents in a bid to encourage the businesses to bring foreign currency through formal channel in the country.
The Value Added Tax (VAT) wing of the NBR has issued a Statutory Regulatory Order (SRO) by waiving VAT on the foreign income of the indenting agents.
The SRO, dated April 15, has exempted the indenting agents from paying VAT following request of the sector and in compliance with a verdict of High Court (HC).
VAT officials said high rate of tax had discouraged some indenting agents to collect their service charges through formal channel. The NBR waived the tax to reduce the tax incidence on the agents. Currently, there are 7.5 per cent Advance Income Tax (AIT) on indenting agents.