Islamabad: The Khyber Pakhtunkhwa Revenue Authority (KPRA) on Thursday announced its decision to exempt cash distribution services — under the Ehsaas Emergency Cash Programme — for sales tax payment, a news source reported.
According to details, all cash distributed as part of the
Ehsaas Emergency Cash Transfer Initiative (EECTI) will be exempt from sales tax
till June 30. The exemption would continue till the said date unless retracted
earlier or extended further.
In a notification, KPRA stated that it would exempt all such services from sales tax provided by branchless banking operators as part of the Ehsaas Emergency Cash Programme in response to the COVID-19 pandemic. Similarly, the banks that had entered into arrangement with these branchless banking operators for the relevant service transactions would not charge, pay, or withhold any sales tax on the service charges.
The notification added that the benefit of this exemption
would not be admissible or available to the banks themselves in regards to
charges or commissions received, retained, paid, or payable to them on account
of their own banking services. Moreover, no tax input adjustment would be admissible
against the output tax exempted, it said.
