Finance
Minister, Senator Mohammad Ishaq Dar, witnessed 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 on Monday. 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,
Mr. Tariq Bajwa, Chairman FBR, Mr. Tariq Pasha, and senior representative
of 1-Link, Mr.Najeeb Agrawalla. Special Assistant to Prime
Minister on Revenue, Mr. 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.