The Federal Board of Revenue (FBR) in Pakistan has reinforced the requirement for businesses to prominently display their National Tax Number (NTN) at all places of operation, in accordance with Section 181C of the Income Tax Ordinance, 2001.
This move, detailed in the updated version of the Income Tax Ordinance, 2001, which is current up to June 30, 2021, emphasizes the significance of the NTN in the taxation landscape. The updated ordinance incorporates amendments introduced through the Finance Act, 2021.
The specific language of Section 181C reads as follows:
181C. Displaying of National Tax Number.— Every person deriving income from business chargeable to tax, who has been issued a National Tax Number, shall display his National Tax Number at a conspicuous place at every place of his business.*
This provision underscores the obligation for all individuals or entities earning income from business activities that fall under the purview of taxation to visibly showcase their National Tax Number. The term “conspicuous place” implies that the NTN should be displayed in a location easily noticeable by stakeholders, such as customers, suppliers, and tax authorities, at each business location.
The National Tax Number serves as a unique identifier for businesses and plays a crucial role in facilitating transparent tax compliance. It allows tax authorities to efficiently track and manage the tax obligations of businesses, aiding in the overall process of revenue collection.
Compliance with this requirement not only aligns with legal obligations but also promotes transparency in business dealings. The FBR’s emphasis on displaying the NTN is part of broader efforts to enhance tax compliance and ensure that businesses contribute equitably to the national tax revenue.
Businesses failing to comply with this mandate may face consequences in the form of penalties or other punitive measures as stipulated by the Income Tax Ordinance. Therefore, it is incumbent upon business owners and operators to ensure that their National Tax Numbers are prominently displayed, underscoring their commitment to responsible and transparent business practices.
As the FBR continues its efforts to streamline tax procedures and improve compliance mechanisms, adherence to such regulatory requirements becomes increasingly critical. The display of the National Tax Number serves not only as a legal requirement but also as a visible commitment to contributing to the economic development of the country through responsible tax practices.
