ISLAMABAD: Finance Minister Mohammad Ishaq Dar witnessed a signing ceremony for a modern tax payment system between the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP) and 1-Link at the Ministry of Finance.
The modern system will enable payment of taxes through Alternate Delivery Channels (ADCs). A Memorandum of Understanding (MoU) for launching a pilot project for payment of taxes / duties on cross border trade, and an agreement for payment of domestic taxes were signed during the ceremony. The MoU and agreement were signed by Governor SBP Tariq Bajwa, Chairman FBR Tariq Pasha, and senior representative of 1-Link, Najeeb Agrawalla. Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan, was also present on the occasion.
Welcoming signing of the MoU and agreement, the finance minister said that mode of payment of taxes has an important role to play in increasing tax revenues and compliance by taxpayers.
He said that the modern system for payment through ADCs is an important tax reform for further facilitating the taxpayer and increasing revenue collections.
The minister was informed that technological advancements have enhanced the efficiency and credibility of tax payment systems.
After the launch of ADCs payment facility using e-payment system, taxpayers will have the option to make tax payments 24/7 through ATMs, online banking or mobile applications.
This will enable taxpayers to avoid long queues for tax payments at bank branches, save time and reduce the cost of doing business. It has been a priority of the current government to reduce the cost of doing business and make tax compliance easier for taxpayers in compliance with the spirit of Trade Facilitation Agreement (TFA) of the WTO and Ease of Doing Business of the World Bank.
The ADCs payment system will help SBP save billions of rupees which are currently paid as annual service charges for revenue collection. The ADCs would also ensure real-time transfer of funds to the national exchequer, enable FBR to report accurate collection of taxes on real time basis, and avoid the need for cumbersome reconciliations. The modern payment system will also enable a more conducive environment for e-commerce in Pakistan.
