The State Bank of Pakistan (SBP) has instructed commercial banks to observe extended working hours on June 30, 2020. This decision aims to facilitate the timely payment of duties and taxes as the fiscal year concludes.
According to a notification issued on Friday, the SBP has mandated that field offices of the SBP Banking Services Corporation (SBP-BSC) and authorized branches of the National Bank of Pakistan (NBP) remain open until 7:00 PM for cheque collections and until 10:00 PM for cash transactions on June 30.
To support this extension, a special clearing session has been arranged by the National Institutional Facilitation Technologies (NIFT) at 7:00 PM on the same day.
The SBP’s directive ensures that all banks keep their relevant branches operational until the completion of the special clearing for government transactions. This measure of extended working hours of banks is part of the SBP’s broader strategy to streamline the process of tax collection and provide taxpayers with ample time to fulfill their financial obligations without the stress of impending deadlines.
Streamlining Tax Payments
The extended hours for banks are expected to offer considerable relief to businesses and individuals, particularly those who face tight schedules in making end-of-year tax payments. By allowing additional time for cheque collections and cash transactions through banks, the SBP aims to reduce the risk of payment delays and associated penalties.
This initiative is aligned with the SBP’s commitment to enhancing the efficiency of tax collection and supporting the government’s revenue generation efforts. The extended hours of banks will facilitate the smooth collection of government receipts, contributing to the stability and liquidity of the financial system.
Positive Industry Response
The banks and business sectors have welcomed the SBP’s decision. Extending banking hours is seen as a crucial step to ensure that all taxpayers have ample opportunity to meet their tax obligations in a timely manner.
As the fiscal year 2019/2020 draws to a close, the SBP’s directive underscores a pragmatic approach to addressing the practical needs of taxpayers. The extended hours of banks on June 30, 2020, will play a key role in facilitating efficient and timely tax payments, benefiting both taxpayers and the government.
Conclusion
The State Bank of Pakistan’s decision to extend hours of banks on June 30, 2020, demonstrates its dedication to supporting taxpayers and ensuring effective tax collection. This proactive measure will help ensure a seamless end to the fiscal year, promoting economic stability and compliance.