The State Bank of Pakistan has announced that from January 2020, the State Bank of Pakistan will bear the digital payment fee or transaction charges which were being charged from the customers.
The central bank has announced that it will bear the cost of online payment of taxes and duties to the government in a bid to document the economy, however, this will cost the central bank millions of rupees.
“This will prove to be a game-changer in the payment system,” SBP Director Finance Qadir Bakhsh said at a seminar titled “Collection of Taxes through Alternate Delivery Channels and Over the Counter,” on Thursday.
Furthermore, he added that there will be no deduction made from customers’ accounts. The government will get the revenue directly in its treasury account.
Currently, the transaction fee for tax payment is
- Rs. 10 for up to Rs. 100,000,
- Rs. 20 for Rs. 100,000 to Rs. 1 million
- Rs. 50 for above Rs. 1 million.
“This (fee payment by the SBP) will promote digital banking…and help the government document the economy,” the SBP director finance.
The fee payment may cost the central bank millions of rupees, he said, as people made close to 1.16 million transactions to pay Rs. 300 billion in taxes in the past 10 months through the online payment system.
The online system launched in 2018 by the Federal Board of Revenue (FBR), in collaboration with the SBP and 1Link, facilitates payment of federal taxes, customs duty and federal excise through ADCs.