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Banks allowed to charge Rs50/transaction for online tax payment

Banks allowed to charge Rs50/transaction for online tax payment

KARACHI: State Bank of Pakistan (SBP) has allowed banks to charge Rs50/transaction for the payment of taxes/duties through 1-Link online transaction collection (OTC) facility, a circular said.

The circular said, in a meeting held with banks on July 17, it was decided that they may charge this amount for providing the aforementioned facility.

The central bank said all the banks and microfinance banks and institutions (MFBIs) had been advised to activate their 1-Link OTC service to facilitate their clients, particularly corporate ones and small and medium enterprises (SMEs).

The SBP said 14 banks have already activated the facility for collection taxes, while the remaining banks should activate it at the earliest but not later than September 30, 2018.

“The banks, already having the facility, shall inform their corporate and SME clients about its activation and encourage them to use it, while other banks shall inform their clients after activating it,” the circular said.

It was also decided that the banks with OTC facility should pay their own taxes including the withholding tax collected by them as withholding agent through the service available with them.

“The banks not presently having the OTC facility shall also pay their own taxes and the withholding tax collected by them as withholding agent through any of the 14 banks having the OTC facility,” the SBP added.