Government Urged to Provide Tax Relief in Income Tax
Islamabad: According to news reports, the Senate Standing Committee on Finance and Revenue requested a one-year tax amnesty for persons earning up to PKR 1.2 million annually.
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According to the committee chaired by Senator Talha Mahmood, this will give them much-needed relief during the COVID-19 outbreak and help them confront the subsequent inflationary increase.
The committee also suggested that the State Bank of Pakistan reduce the Inter-Bank Funds Transfer (IBFT) fee to promote digitization and aid the underprivileged. In this regard, the committee instructed Deputy Governor Jameel Ahmad of the SBP to provide a compliance report within one month.
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The judgment was made after the central bank imposed a monthly limit of PKR 25,000 above which commercial banks were permitted to collect a fee equal to 0.1% of the transaction value or PKR 200, whichever was lower.
According to a spokesman of the SBP, a decision was made to strengthen IBFT transaction services and permit banks to recover the service costs they spent. However, transactions within the same bank remain free of charge.
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