SBP designates Bank of Khyber as e-stamping agent in KP

The State Bank of Pakistan (SBP) and the Bank of Khyber (BoK) have formalized an Agency Agreement, designating BoK as the collecting agent for e-stamping services in Khyber Pakhtunkhwa (KP) as part of the launched e-stamping project.

This initiative is said to be in line with the KP government's commitment to promoting digital services and facilitating ease of business within the region.

Leveraging technology, residents of KP can now effortlessly procure stamp papers with a simple online process provided by BoK, according to the agreement.

The e-stamping project will be implemented across the province in phases, contributing to increased revenue collection and ensuring comprehensive data reconciliation.

The shift to e-stamping brings various advantages, including enhanced public convenience, time savings, elimination of paper-related fraud, prevention of government revenue leakage, and the secure storage of information in digital format for transparency.

The new system facilitates online verification of both judicial and non-judicial stamp papers, minimizing the risk of fraud and enabling the responsible reuse of stamps.

Additionally, for property transactions, the stamp duty value is determined using DC valuation tables based on location, covered area, and property type (residential or commercial).

Furthermore, this valuation method will help curb tax evasion and prevent income leakage from understating property values, a practice often associated with manual stamping.

The implementation of these features is anticipated to lead to a substantial increase in the collection of stamp duties.