ISLAMABAD, Aug 13: The Central Board of Revenue has asked all the commercial and public banks and financial institutions not to detect withholding tax on transfer of funds effective from July 1, 2002.

CBR official spokesman and member direct taxes Vakil Ahmed Khan in a letter to the President, Pakistan Bank Association, said that through Finance Ordinance 2002 withholding tax on outstation cheques, demand drafts, pay orders, special deposits receipts, cash deposit receipts or rupee traveller cheques and telegraphic or electronic transfer of funds has been withdrawn.

Therefore, no deduction of tax would be required by the banks from issuance of the aforementioned instruments with effect from July 1, 2002, Mr Khan said.

According to the spokesman, it would be appreciated if all the banks and financial institutions were informed of the change made in the income tax law for compliance.