APTMA chief urges FBR to withdraw 'controversial' payment mode step

LAHORE: Chairman All Pakistan Textile Mills Association (APTMA) Abdul Rahim Nasir has urged chairman Federal Board of Revenue (FBR) to withdraw mandatory digital mode of payments as it is neither possible for the business community to adopt it as the only mode of payment nor the banks are yet ready to implement it from November 01, 2021.

He said the condition is in contradiction with other modes of payment through banking channels like cross cheques etc which have remained in practice since long. This abrupt change is fraught with risks of halting the business activities especially when neither definition of "digital mode of payment" has been provided in law nor the banks, taxpayers, shipping lines and other stake holders have yet been educated about the said mode of payment.

Rahim Nasir said that taxpayers and financial institutions need to be imparted comprehensive training before switching over from conventional methods of payment through banking channels to the digital mode of payment. Currently post-dated cheques are used as a means to ensure payments due against sales on credit.

Rahim said that FBR needs to ensure that all suppliers/service providers accept this mode of payment, especially in the case of individuals or Association of Persons (AoPs). He said a precise and concise definition of the term "digital means" needs to be provided by the FBR to avoid ambiguity and interpretational issues. He said it is not possible for the business community to adopt this policy.

Chairman Aptma has urged advisor to the prime minister on Finance and Revenue and the chairman FBR to withdraw the mandatory condition of digital mode of payment as the only mode of payment and proposed that the taxpayers may be allowed to make payments through conventional modes of payment through banking channel and digital mode of payment simultaneously for at least one year.

Rahim urged the government for an urgent extension of date as the sword of November 01 for adoption of digital mode has created unrest and uncertainty amongst the business community.

Copyright Business Recorder, 2021