Banks/ DFIs/ MFBs should remain fully cognizant 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.

2.         Banks/ DFIs/ MFBs are therefore advised to ensure that appropriate procedures are in place for timely credit of tax receipts in the FBR Account and the proceeds of all the taxes including Withholding Tax for the current fiscal year are transferred/ deposited to FBR Account, on or before the close of business i.e. on June 30, 2012 (being Saturday).

3.         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.

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

5.         Please acknowledge receipt.