20000106

ITC calls for list of seamen working on foreign ships

MUZAFFAR QURESHI

KARACHI: The Income Tax Department has asked recruiting agents to provide details of seamen working on foreign flag vessels.

The demand was made to a delegation of Pakistan Ship Agents Association (PSAA), which met the Income Tax Commissioner, Iqbal Ahmad Jumani, to discuss the issue of income tax on seamen working on foreign vessels.

The I.T. commissioner while allowiing more time to ship agents to seek redressal of their tax problems, directed that all agents should send notices to seamen employed through them informing them that they were liable to pay tax on their external income. The notices will be sent to both the past and the present seamen employed.

The PSAA has requested its members to fulfil the legal requirement as directed by the Income Tax Department and prepare the required list of seamen promptly and send the same to the Income Tax Department.

Meanwhile, the PSAA has urged the Ministry of Communications to persuade the Ministry of Finance to exempt seamen employed by foreign flag vessels from income tax to save the loss of foreign exchange income of 70 million dollars per annum.

Farouq H. Rahimtoola, Chairman, PSAA, in a letter has requested the secretary communications to persuade the Central Board of Revenue to restore clause 6 of 2nd Schedule of the Income Tax Ordinance which exempts seamen working on foreign vessels from income tax. He said that a previous chairman of CBR had acknowledged in a letter that seamen should not be charged income tax if they earned their wages abroad.

He pointed out that the draft of the new shipping policy prepared by the sub committee of the Advisory Body for Ports and Shipping had resolved this issue. Farouq requested the Ministry of Communications to implement a policy statement already agreed by the ministries and departments in the government.