SBP to bear service charges on tax collection via Alternative Delivery Channels

KARACHI: The State Bank of Pakistan (SBP) has announced to bear all services charges over collection of government taxes through Alternative Delivery Channels (ADCs).

ADC is an e-Payment facility established by the SBP in collaboration with the FBR and 1Link for collection of government duties and taxes through Internet banking, ATMs, banks’ mobile applications and Over-the-Counter (OTC) at banks’ branches.

The central bank in a statement said that the bank will make the online tax payment free from January 1st next year in a bid to promote digital banking in the country.

Presently, the transaction fee of Rs10 is charged for tax payment for up to Rs100,000, whereas, Rs20 is charged for Rs100,000 to Rs1 million and Rs50 is charged in transaction fees for above Rs1 million

The central bank would bear all service charges such as digital payment fee or transaction charges to the banks for collection of the government taxes through e-banking, against the past practice of charging taxpayers.

The new system would help in documentation of the economy besides facilitating/encouraging taxpayers, an official said.