SECP Reduces EMR Access Fees to Rs3,000 with Upgrades

The Securities and Exchange Commission of Pakistan (SECP) has approved a major reduction in access fees for the Electronic Mortgage Register (EMR) and introduced system upgrades, a digitalisation push with critical tax compliance implications for financial institutions and businesses. Our tax law firm advises clients to leverage these changes while ensuring alignment with Federal Board of Revenue (FBR) regulations.

The EMR, accessible via the SECP’s Financial Institutions (FI) Portal, now costs Rs3,000—down from Rs15,000—with access validity extended from 30 to 90 days, enhancing accessibility and efficiency in mortgage reporting. Registered Intermediaries gain direct access, accelerating loan processing for corporate borrowers, while upgrades include a display for merged companies’ charges, a bank-wise indebtedness view, automated unpaid invoice alerts, and a prepayment option for smoother operations. These align with the SECP’s modernisation strategy, per web sources like Dawn, reflecting IMF-driven reforms to boost revenue transparency.

From a tax law perspective, lower EMR fees may reduce operational costs, potentially deductible under Section 29 of the Income Tax Ordinance, but require proper documentation to avoid FBR disallowances. Streamlined loan processing could impact interest expense claims under Section 22, while automated alerts may trigger FBR audits on unpaid liabilities, especially for VAT-registered entities claiming input tax credits under Section 8B. The digital shift signals heightened compliance scrutiny, as financial institutions must reconcile tax filings with sales tax at 17% under the Sales Tax Act, 1990.

Critically, the narrative of “transparency and efficiency” may mask a revenue-centric agenda—web reports like The Express Tribune suggest these upgrades aim to plug tax leakages amid Pakistan’s fiscal deficit, potentially increasing audit risks for corporate borrowers. Clients should prepare for enhanced oversight.

Our firm advises clients to review EMR cost deductions, ensure tax compliance, and brace for FBR scrutiny, navigating this digital tax evolution.