Aptma urges FBR to withdraw mandatory digital payments mode

LAHORE: All Pakistan Textile Mills Association (Aptma) chairman Abdul Rahim Nasir has urged the Federal Board of Revenue (FBR) chairman to withdraw the 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 ready to implement it from November 1, 2021, a statement said.

The condition is in contradiction with other modes of payment through banking channels such as cross-cheques, etc, which have remained in practice since long, he said.

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 the law nor the banks, taxpayers, shipping lines and other stakeholders have yet been educated about this mode of payment.

Nasir said that the 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.

He said the 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).

A precise and concise definition of the term “digital means” needs to be provided by the revenue board to avoid ambiguity and interpretational issues, he said.

The Aptma chairman said it is impossible for the business community to adopt this policy and urged Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin and the FBR chairman Dr Muhammad Ashfaq Ahmed 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 channels and digital mode of payment simultaneously for at least a year.

Nasir urged the government for an urgent extension of date, as the sword of November 1 for adoption of digital mode has created unrest and uncertainty among the business community.