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ISLAMABAD: Dr. Inayat Hussain, the Deputy Governor of the State Bank of Pakistan (SBP), informed the Senate Standing Committee on Finance on Wednesday that the Federal Board of Revenue (FBR) has become a significant obstacle to the implementation of QR code-based payment systems in Pakistan.
According to him, Pakistan is one of the worst countries in the world when it comes to using QR codes. This is because businesses are hesitant to use the technology because of the tax problems caused by FBR.
The Deputy Governor revealed that businesses spent $138 million on bank card fees last year. However, many companies do not implement QR codes since they receive tax-related notices from the Federal Board of Revenue (FBR).
Also, the deputy governor talked about the terrifying practice of FBR notifying businesses of the installation of QR code payment systems. A lack of complete acceptance of the QR code-based payment system has resulted from the focus on taxes rather than facilitation, which has made it harder to onboard merchants, fill out forms, and open bank accounts.
In his opinion, all businesses should implement QR code systems to facilitate customer payments.
Within six months of resolving these concerns, the Ministry of Finance and the State Bank are required by the Finance Committee to report on their progress.
Furthermore, the deputy governor made it clear that the central bank would not launch electric car refinancing schemes, since such initiatives could only be launched by the Export-Import (Exim) Bank.
