KARACHI: The Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) will discuss a proposal of withholding tax (WHT) exemption on cash withdrawals made by branchless banking (BB) agents.
The issue would be discussed at the 3rd meeting of National Financial Inclusion Strategy (NFIS) Steering Committee.
As per proposal, the banks engaged in branchless banking will convey the detail of accounts of their agents to banks where agents are maintaining their accounts (agents’ banks). It is proposed that the BB providers will calculate aggregate disbursements made by each agent on a particular day. The information about aggregate disbursements made by each agent will be conveyed by BB providers to agents’ banks on the next day. The agents’ banks will refund the withholding tax deducted from agents’ accounts to the extent of disbursements made by them.
