Taxation

Banks to facilitate tax payment via ATMs

KARACHI: People will soon be able to pay federal taxes and customs duties through internet banking and ATMs.

According to a press release on Monday, the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and 1LINK signed an agreement to develop the mechanism, which is expected to be operational by the end of 2017.

According to the proposed mechanism, banks will add FBR-Inland Revenue Service and FBR-Customs as billers in the Billers Module and develop the necessary interface with 1LINK.

“After the system is made operational, taxpayers and importers will fill their tax and customs duty payment details in the FBR-IRS and Customs online modules to generate Payment Slip IDs (PSIDs),” said the SBP.

The PSID will be used to access the tax or duty payment details on the bank’s webpage or ATM. The taxpayer or his agent will then pay the tax by debiting his bank account for onward credit to the respective government account in SBP Banking Services Corporation. The whole process will be online and fully automated.

The SBP said the facility will be available around the clock, seven days a week. The banks have been advised to demonstrate full ownership and commitment for the successful and timely implementation of this strategically important project. This will bring huge efficiency gains and let the public pay taxes and duties in a hassle-free manner.

Speaking on the occasion, Finance Minister Ishaq Dar congratulated the SBP and FBR for initiating the project, which will revolutionise the tax collection mechanism.

SBP Governor Tariq Bajwa said the initiative is part of the SBP Vision 2020, which envisages the development of a robust payment system.

FBR Chairman Tariq Mehmood Pasha said the project is a result of collaboration and cooperation among the FBR, SBP and private sector.

National Bank: Meanwhile, National Bank of Pakistan (NBP) in collaboration with the Punjab Excise and Taxation Department is going to automate the collection of property tax across Punjab, a statement said.

The new system will make the process easier for people because property tax is currently being collected manually through NBP branches.

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