Federal Bureau of Revenue (FBR) has refuted news item circulating in social media and at some news websites that gold medallist Nadeem Arshad will have to pay 20 percent of tax on his gifts under Income Tax Act section 156, reported 24NewsHD TV channel.
FBR spokesman made it clear that Arshad Nadeem was a national hero who won a gold medal for the nation after 40 year. Therefore FBR will not impose tax on his gifts.
Authorities said that Arshad Nadeem is a grade 18 officer in WAPDA and is an active income tax filer.
Earlier it was reported that all players, including cricketers, get a 20% deduction on their prize money therefore Arshad Nadeem's prize money will also be taxed at 20 percent instead of 40 percent.
FBR is not empowered to waive tax his prize money. However, officials claim the government can waive or give discount in tax on Arshad Nadeem's prize money. The total volume of prize money announced far Arshad Nadeem is Rs 30 crore. He is expected to give tax of Rs6 crore instead of Rs 12 crore, officials said.
Reporter: Waqas Azeem