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Friday, January 28, 2022

Pakistan Pushes Deadline for Corporate Digital Payments Switch to Jan. 31 - pymnts.com

Last updated Tuesday, January 4, 2022 16:12 ET , Source: TopWireNews

Pakistan’s Federal Board of Revenue (FBR) on Tuesday (Jan. 4) pushed back the deadline for the country’s corporate sector to switch to digital payments to Jan. 31, according to a Pakistan Today report.
“Taking cognizance of various representations filed by taxpayers, the FBR is pleased to extend the deadline for digital payments by the corporate sector stipulated under Section 21(1a) of the Ordinance up to January 31, 2022,” the FBR announcement says.
This is the third time the tax department has extended the deadline since the initiative was handed down last year. The first deadline was set for October 2021, while the most recent one expired at the end of the year.
Business leaders had originally asked for a one-time extension of at least six months but were rebuffed in that request, the Pakistan Today report says.
The FBR has overhauled the Tax Laws (3rd Amendment) Ordinance, 2021, in an effort to document the economy, capture supply chains and broaden the tax base.
A clause in the new ordinance makes it mandatory for companies to make digital payments on expenditures of more than Rs250,000 (about $3,354). Utility bills, freight charges, travel and payment of taxes and fines can still be paid in cash or through traditional banking means under the new structure.
Almost 99% of all business transactions in Pakistan are done using cash, according to the country’s tax department. Third-party payments are another popular business practice across Pakistan.
Meanwhile, the State...



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