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  • Duty, tax above Rs1 million made mandatory through e-payment

    Duty, tax above Rs1 million made mandatory through e-payment

    KARACHI: The payment duty and taxes amounting above Rs1 million has been made mandatory through the electronic mode from January 20, 2021, said Wajid Ali, Director General, Reforms and Automation, Federal Board of Revenue (FBR).

    At a meeting with members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Wajid Ali said that the online system was introduced through a procedure in 2017 in collaboration with the State Bank of Pakistan (SBP), a statement said on Thursday.

    This system is connected with the WeBOC and payment of taxes can be made by pay orders and cash to create a balance.

    Such procedures are already adopted by a number of countries worldwide. The system is operated by a unique ID which is called a PSID number issued to the relevant users who are connected to approximately 16000 different branches of the relevant bank across Pakistan.

    In order to further ease the payment of taxes, the system is also supported by easy paisa / OTC on a mobile phone to the users as well and the facility through this system is available with the taxpayers on the basis of 24/7.

    No drastic adoption of the system was observed last year by the users and in order to enforce the online payment by the system, it is now automated in such a way that the payment of taxes beyond Rs. 1 million cannot be made through the old system of payment of taxes.

    “It is, therefore, mandatory to the taxpayers that they are bound to get PSID number if the amount of taxes to be paid accedes Rs. 1 million or above,” he added.

    The last date to adopt the new system by the taxpayers is January 20, 2021, as announced by the FBR so that the payment of taxes may be made more effective and transparent.

    This will also ease to compile the statistical data relating to revenue collection within no time. At present now 22 percent of the collection of taxes is being carried out with the help of a new electronic system and it is not out of place to mention that positive feedback is coming in from the taxpayers who are already using the facility.

    Mian Nasser Hyatt Maggo President, FPCCI appreciated Pakistan Revenue Automation Private Limited (PRAL) for improving ease of doing business and facilitating the business industry while presiding the meeting of FPCCI Standing Committee on Customs headed by Shabbir Hassan Mansha.

    He further said when it comes to business endeavors every business person has to deal with Customs, FBR, and SBP.

    Most people are confused by the complexity of processes. The meeting expects the experts to disentangle the process complications.

    A team of experts from Pakistan Customs and Pakistan Revenue Automation Private Limited (PRAL) joined FPCCI Head Office, Karachi the in the meeting of FPCCI Standing Committee on Customs, for a presentation with FPCCI member trade bodies across Pakistan simultaneously at FPCCI Head Office Karachi (Chair), Capital Office Islamabad and Regional Offices at Lahore, Peshawar & Quetta via Zoom Link to deliver the presentation.

    The team members include Mr. Wajid Ali, Director General, Reforms & Automation, FBR; Sanaullah Abro, Director Reforms & Automation, and Arshad Hussain, Sr. Manager, PRAL, Customs House, Karachi along with representative of State Bank of Pakistan (SBP).

    The presentation was attended by the trade bodies from all over Pakistan on Zoom.

    In the meantime, the trade bodies were also briefed by the other team members including representatives from the State Bank as to how to adopt the new system with minimum hurdles.

    During the question-answer session, the representatives of trade bodies from all over Pakistan were invited to share their views and queries in this respect. In general, the trade bodies have shown their interest and shown their willingness to register themselves within the newly adopted system of payment of taxes.

    The views were also shared by the representatives of trade bodies via Zoom Link from all FPCCI Stations who were present on Zoom.

    Shabbir Hassan Mansha, Convener, FPCCI Central Standing Committee on Customs informed that his committee will organize more sessions relevant to Customs, and SBP to enhance the knowledge and relevant information on the subject.

    Khurram Ijaz former vice president FPCCI while presenting the vote of thanks to the participants and the experts’ said that a close liaison between the FBR and SBP and trade bodies should be maintained by appointing a focal person from FBR and SBP respectively for the ease of trade.

  • SBP assures no limit to e-payment for duty, taxes

    SBP assures no limit to e-payment for duty, taxes

    KARACHI: State Bank of Pakistan (SBP) has assured that there will be no limit to electronic payment for duty and taxes.

    The SBP assured this at a meeting with office bearers of Karachi Customs Agents Association (KCAA), a statement said on Monday.

    The KCAA said that from January 20, 2021 the collection of custom duties and taxes of more than one million rupees will be collected through e-payment. The e-payment system shall provide round the clock facility to the taxpayers for their payments.

    It said that on the request of KCAA, a comprehensive joint meeting has been conducted by the SBP through video link on Zoom Cloud headed by the Director Finance Department of State Bank of Pakistan and attended by more than 60 Regional Heads of all designated Banks and KCAA’s delegation was held on January 07, 2021 at 3:00 PM, wherein the issues pertaining to banking sectors were discussed.

    In order to facilitate the trade and taxpayers the following decisions were taken by the competent authorities of SBP in the said meeting.

    It was decided that for the payment of Custom Duties and Taxes, any amount can be paid through cheque in any branch of same bank alongwith PSID instead of following the process for issuance of Pay Order.

    However in case any variation, the excess/additional amount of taxes will be collected through cash or in case the taxes amount is less than of the cheque amount, the excess amount will be deposited in the account of taxpayers just like PD Account.

    The KCAA highlighted that few banks have different limits for account holders and they do not allow payment of duty and taxes of more than their assigned / authorized limits through the module of e-payment.

    It was agreed by the State Bank of Pakistan that no capping /limit will be fixed in future, the taxpayers and stakeholders can paid their customs duties and taxes without having any limits.

    KCAA also pointed out that Corporate Customers do not have ATM Cards, Mobile Apps and Internet Banking, hence they are unable to pay On-Line payment for duty and taxes. Particularly the corporate sector does not even have access for On-Line Banking and they have to make payments through conventional method of submitting pay orders or cheques.

    Corporate Sector who are willing to make e-payment for duty and taxes should have 24 / 7 module for facilitation of payments. In this regard it was decided by the SBP that in near future all such facilities will be provided to the corporate sectors. Few Bank like Standard Chartered, Samba Bank etc already providing net Banking to corporate sectors

    It has been observed that while custom duties and taxes paid through E-Payment the acknowledgement of payment challan are delayed for 2 to 3 days.

    Now the matter has been resolved, the acknowledgment payment challan will be generated on real time basis.

  • Taxpayers urged to use electronic payment facility

    Taxpayers urged to use electronic payment facility

    ISLAMABAD: Federal Board of Revenue (FBR) has urged the taxpayers to avail electronic mode of payment for duty and taxes. The e-payment facility has been introduced for convenient and hassle free payment, said a statement issued on Monday.

    In continuation of FBR reforms and modernization drive, E-Payment facility for payment of all FBR taxes as well as some provincial taxes has been introduced for convenient and hassle free payment.

    On the one hand, traders can electronically pay all import duties and taxes through Customs computerized system WeBOC at ports and border stations across Pakistan.

    While on the other hand, taxpayers can also electronically pay income tax, sales tax and Federal Excise duty sitting in their homes.

    E-Payment system provides round the clock facility to taxpayers and traders to make online payment of customs duties and other FBR taxes as well as provincial cess and stamp duty.

    The facility is available through internet and mobile banking by using more than 15000 ATMs of 16000 Over the Counters (OTC) bank branches of commercial banks spreading across the country.

    The taxpayers’ confidence and interest in E-payment is growing fast and it can be gauged from the fact that the proportion of number of E-payments of Income Tax, Sales Tax and Federal Excise Duty has increased from 6.26 percent of total payments during July to December 2019 to 40.5 percent during same period of 2020.

    Similarly the proportion of amount deposited in these E-payments has increased from 13.55 percent of total payments to 76.5 percent during the comparative periods.

    E-payment facility has greatly helped the traders and other taxpayers’ during the COVID pandemic since all transactions can be completed without physical interaction.

    Currently 18.6 percent of import duties and taxes are being collected by Pakistan Customs through E-Payment system. More than 80,000 consignments consisting of nearly 22 percent of total imports were cleared in WeBOC through E-Payment in the last 6 months.

    Apart from major Customs stations including Karachi, Lahore, Islamabad and Peshawar, the facility is also being availed by importers in remote areas like Taftan and Khunjerab.

    FBR urges the traders and other taxpayers to utilize E-Payment facility as it reduces their cost of doing business and contributes significantly towards improving the ease of doing business.

    It also expedites the clearance of goods, enhances transparency in the duty payment mechanism and ensures timely revenue reconciliation. Acknowledging E-payment as a major step towards trade facilitation, World Trade Organization’s Trade Facilitation Agreement also promotes the use of electronic payment methods amongst the traders.

    FBR has launched an awareness campaign to enhance the use of E-payment facility. In this regard, a number of seminars have been conducted to educate trade bodies and Customs Agents about the benefits of E-Payment. The traders can also take benefit of the FAQs section relating to E-payment available on the WeBOC web page.

  • FBR launches trial run for online payment through 18 banks

    FBR launches trial run for online payment through 18 banks

    In a significant leap towards modernization and efficiency, the Federal Board of Revenue (FBR) has initiated a pilot run for the collection of duties and taxes through an online payment system in collaboration with 18 prominent banks.

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