20000104

Payment thru cheques Govt urged to withdraw order

RECORDER REPORT

KARACHI: Syed Usman Ali, Chairman, North Karachi Association of Trade and Industry (NKATI) has urged the federal finance minister to withdraw the order for payment of more than Rs 50,000, through cheques.

Under this order all payments of Rs. 50,000 and above should be by crossed cheque otherwise sales tax input would not be provided nor refunds and adjustments would be allowed. The government had also directed that the utility bills be paid through cross cheque. Ali said that payment of utility bills though cross cheque took two to three days and that might cause delay of payment by due date causing 10 percent of late payment surcharge.

He said that the formula of payment through cross cheques is unpracticable and it should be withdrawn.