ALL account holders who acquire a locker or ATM card, withdraw money from their own accounts, and claim prize money of prize bonds, are required to pay central excise duty (CED) and/or withholding tax (WHT) despite being filers. This seems to be highly unjustified.

Recently, I went to my bank and asked for a locker. I was given three options — security deposit of Rs40,000 and no rent; key deposit of Rs4,000 plus yearly rent of Rs5,000 with 15 per cent CED for a medium-sized locker; and key deposit of Rs2,000 plus yearly rent of Rs3,500 with 15pc CED. When the government has nothing to do with the installation of ATMs or lockers, for it is done by the banks, what is the point of imposing duties or taxes on the customers?

The account holders have no option, but to pay unjust CED/WHT to their banks because the State Bank of Pakistan (SBP) looks the other way and is not doing anything for the improvement in facilities for the account holders. It has failed to stop misleading advertisements running day and night on electronic media.

All commercial banks are actively promoting their current accounts, and claim to be offering several services, but they never disclose anything about profit payment, which is not made to those holding current accounts.

The SBP is a partner in this misleading campaign. The SBP has also failed to introduce a uniform structure of bank charges and has given a free hand to the banks to determine their own charges.

Even the commercial of a solely Pakistani ATM card, which works in collaboration with several banks, does not tell the account holders that the said card does not operate beyond Pakistan.

In most cases, branch managers try to cheat the pensioners, and offer them conversion of their salary accounts into current account for pension purposes, which is highly unethical. The SBP is under obligation to clarify that it is not mandatory to open current account for receiving pension.

If the SBP is not willing to fulfil its responsibility, consumer societies have a role to play. They should put pressure on the government to remove CED/WHT on banking services or any other sector where the government does not have an investment.

K.T.H.
Karachi

Published in Dawn, December 20th, 2025