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Banks charging

Rs 4 CED per cheque

ISLAMABAD: Most of the nationalised and private commercial banks are charging Rs 4 per leaf (cheque) as central excise duty (CED) from their account holders, despite its withdrawal in the national budget, 1999-2000.

The government, through the Finance Act 1999, had withdrawn CED on the issuance of the cheque-books, which was being deducted at Rs 4 per leaf to promote bank transactions.

The Ministry of Finance and State Bank of Pakistan had issued a circular to this effect. But local bank managers when asked to comment as to why they were charging this amount, said that they had yet not received any instruction from their head offices. "Once we receive any directive we will stop this deduction," said a bank official.

Most of the account holders are unaware of this deduction as the amount is deducted from the accounts directly, when a new cheque-book, is requisitioned.

In reply to a question another bank official said that the CED is paid to the Central Board of Revenue at the time that cheque-books are purchased. "Our head office may issue the circular, exempting CED when the current stock of cheque-books runs out, on which CED has been paid," he said.ÑAPP