FBR stresses traders and taxpayers to opt for electronic tax payment

Continuing the ongoing reforms involved in increasing revenue and innovating the institution, the Federal Board of Revenue (FBR) has introduced an electronic method of paying taxes.

Thanks to this new system, traders can electronically pay import duties and taxes through Customs WeBOC located at border stations and ports across the country. They can pay income tax, sales tax, and federal excise duty at home, said FBR.

Through the electronic payment system, traders and taxpayers can pay customs duties and other FBR taxes, including provincial taxes and stamp duties, online at any time. This facility is available through internet and mobile banking.

Taxes and duties can be paid through 15,000 ATMs of 16,000 commercial banks spread across the country.

FBR stated that the trend and confidence of taxpayers in electronic payment of taxes and duties has improved, as evidenced by the fact that the proportion of electronic payment of income tax, sales tax and federal excise duty has increased exponentially from 6.26 percent in July to December 2019 to 40.5pc this year.

Similarly, the proportion of taxes collected electronically has increased from 13.55pc to 76.5pc.

Traders and other taxpayers will benefit from this facility of paying taxes and duties electronically during the COVID- 19 pandemic, stated FBR.

Pakistan Customs has collected 18.6pc of total import duties in the form of electronic payment. In the last six months, 80,000 consignments cleared from WEBOC, which is 22pc of total imports, have been subject to electronic duty.

Apart from major customs stations like Lahore, Karachi, Islamabad and Peshawar, importers can also availed this facility in remote areas like Taftan and Khunjerab, the tax collecting authority expressed.

The FBR has encouraged traders and taxpayers to opt for electronic tax payment methods to reduce their business costs as this method has improved trade facilitation.

This method not only enables faster clearance of goods but also maintains transparency in payment of taxes and duties. The World Trade Organization (WTO) insists on promoting the payment of taxes and duties electronically under the Trade Facilitation Agreement.