Over 150 companies and business entities are availing the facility of "direct debit" for electronic deposit of taxes at their doorsteps instead of physical visits to bank branch, to avoid inconvenience of long queues.
Sources told Business Recorder on Tuesday that the Federal Board of Revenue (FBR) has extended "direct debit" facility to the electronic filers of returns, enabling them to directly deposit taxes in the National Bank of Pakistan (NBP) electronically from their accounts.
Presently, 150 companies are depositing around Rs 2 billion taxes every month through the "direct debit facility". Out of 150 units, most of them belong to Lahore. One of the new features of the "direct debit facility" is the facility of advance scheduling available under the new system.
The provision of advance scheduling would allow the taxpayers to communicate schedule of tax payments to the bank in advance and due to this facility banks have the authority to deduct the amount of tax for which these companies and business entities had already given the authority to the concerned bank to deduct the tax amount.
Instead of paying taxes on the last day, this facility would enable the taxpayer to chalk out schedule for payment of taxes. The bank would make deduction of tax as per advance schedule submitted by the registered person. A big advantage of the scheme is that the banks will only debit the amount as per instructions of the account holder, which would save time of the taxpayer as well.
Sources said that it is a step forward towards internet banking and automation of tax payment systems in Pakistan. The board has launched this new innovative service which would allow users of FBR "internet portal" to pay taxes electronically from their home or offices.
Salient features of the scheme show that it would be available to taxpayers who are using FBR E-portal. A taxpayer has to get enrolled with FBR e-filing to set up a bank account without going to the bank. He would obtain digital certificate from the National Institute of Facilitation Technologies (NIFT) and grant direct debit authority to NBP for activation of bank account. This would allow the taxpayer to make tax payments electronically.
Sources said that the board has also linked e-filing data with the NBP database for implementation of the scheme. The security of the payment transactions is being facilitated by digital signature certificates. The new system has placed Pakistan at par with the advanced countries where direct debit facilities and digital certificates are commonly used by the taxpayers.