In a circular letter No 11, issued on June 11, 2012, SBP has reminded banks/ DFIs/ MFBs of their legal responsibilities in respect of timely deduction of applicable taxes on eligible transactions and corresponding credit to accounts of government treasury/ Federal Board of Revenue (FBR).

The discharge of this responsibility attains further importance at the close of the fiscal year, where all receipts and credits are to be reflected in the same time frame/ fiscal year.

Further, the withholding tax on the profits paid by the banks/ DFIs/ MFBs as on June 30, 2012 to the depositors should also be transferred/ deposited to the FBR account on or before the close of business on June 30, 2012.

Accordingly, credible arrangements should also be in place to discharge such liabilities of off-line/ far flung branches as of June 30, 2012.

State Bank of Pakistan may verify compliance of the above instructions during its regular or targeted inspection of Banks/ DFIs/ MFBs.