FBR is Obstructing Adoption of QR Code Payment System in Pakistan

The Federal Board of Revenue (FBR) has emerged as a big obstacle to the implementation of QR code-based payment systems in Pakistan, the Senate Standing Committee on Finance was informed on Wednesday. According to an expert, Pakistan ranks among the worst globally in adopting QR code technology since merchants are reluctant to integrate the system due to tax-related complications courtesy of FBR. The expert disclosed to the Senate Committee that FBR sends notices to merchants when they install QR code payment systems, which creates panic. The emphasis on taxation over facilitation has created barriers to onboarding merchants, completing forms, and opening bank accounts which has hurt the full adoption of the QR code-based payment system. He emphasized that QR code systems should be installed with every merchant to ease payment transactions. The Finance Committee has directed the Ministry of Finance and the State Bank to submit a progress report within six months on steps taken to address these issues. On another note, the deputy governor clarified that the central bank would not introduce refinancing schemes for electric vehicles since programs could only be initiated through the Export-Import (Exim) Bank.