Pakistan removes tax payments through ADC and OTC
Pakistan removes tax payments through ADC and OTC |State Bank announces the removal of government tax payments through ADC and OTC. State Bank will bear fees instead of taxpayers from 1st January 2020, the declaration issued. From January 1, 2020, Bank Daulat Pakistan has announced the removal of fees on payment of government taxes and duties through Alternative Delivery Channels ADC and Over the Counter OTC. According to the details, taxpayers are currently required to pay Rs. 10 to Rs. 50 per transaction on payment of tax through ADCs and Rs. 50 per transaction on payment through OTC, 1st January 2020. Instead, the State Bank will bear these fees instead of taxpayers. This change was reported by the State Bank through FD Circular No. 4 for 2019, December 7, 2019. This decision is part of the State Bank’s efforts to promote digital payments and is likely to result in large numbers of taxpayers. The numbers will come in the form of digital payments of government taxes and duties. The process of paying taxes and duties online was introduced in March 2018 in partnership with the Federal Board of Revenue, with the main aim of facilitating taxpayers.
Taxpayers can pay taxes from over 14,000 ATMs or over 15,000 branches of commercial banks across the country, using Internet mobile banking facilities from their home or office. So far, 346 billion rupees have been collected through this method. It is likely that awareness about the method of recovery through ADCOTC will increase the recovery significantly. Seminars and awareness sessions are being organized across the country through SBP Banking Services Corporation’s field offices. The first seminar was held in Karachi on December 26, 2019, attended by representatives of corporate taxpayers, Chamber of Commerce, business organizations, commercial banks, tax bars, and audit firms. Participants praised the State Bank’s efforts to promote digital payments, saying such sessions are vital for raising public awareness and eliminating their concerns and concerns about digital payments.