CNIC condition to document transactions above Rs50,000: FBR chairman

CNIC condition to document transactions above Rs50,000: FBR chairman

KARACHI: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has said that the condition of Computerized National Identity Card (CNIC) has been made mandatory in order to document transactions above Rs50,000.

Talking at an event organized by Instituted of Chartered Accountants of Pakistan (ICAP) on Wednesday, the FBR chairman said that the purpose of imposing CNIC condition was identify genuine and fake refund claims.

“The purpose of CNIC is to register sales above Rs50,000,” the chairman added.

He said that comprehensive plan had been formulated to document the economy. During first two months of the current fiscal year the authorities were under immense pressure to review the plan. Further during past six months many proposals were received from stakeholders to amend the plan. Besides, the questions were also raised on the condition of the CNIC on sales above Rs50,000.

Through the Finance Act, 2019 many unpopular steps were taken which were however for the betterment of the economy. And these steps have been proven and the economy is now in right path, the chairman added.

He said that the decision was taken to impose regulatory duty to discourage import of luxury and unnecessary goods. Another decision to eliminate zero-rating of sales tax was taken.

The chairman said that during the past few months the FBR had undertaken many initiatives to facilitate taxpayers. Through tax facilitation portal taxpayers can check their transactions and status of their expenditures.

Talking about Afghan Transit Trade, Shabbar Zaidi said that this facility was grossly misused in the past which resulted huge revenue losses for Pakistan. “We are taking measures to stop misuse of Afghan transit trade,” he added.

The chairman said pointed out the role of Pakistan Customs as well, and said that in the past the assessments were made to benefit tax evaders. “Imagine lipsticks and autoparts were assessed on the basis of weight,” he added.

He said that with the help of World Bank the FBR had started a program on value added tax. He said that the country should have a single national tax system.

The chairman said that the provinces were collecting revenue below the existing potential. The collection of tax from agriculture income by the provinces was very low. Besides, the collection of motor and excise tax by the provinces was also below the potential.

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