ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a single identifier number for all domestic taxes.
The initiative, announced on Wednesday, integrates various tax applications, providing a unified platform for income tax, sales tax, and federal excise duty. This step not only harmonizes tax laws but also marks a significant stride towards fostering a business-friendly environment in Pakistan.
Individual taxpayers can now utilize their Computerized National Identity Card (CNIC) as a singular identifier to access and manage applications related to income tax, sales tax, and federal excise duty. Meanwhile, partnership firms and companies will use the National Tax Number (NTN) as the common tax identifier, simplifying the process for businesses and contributing to a more cohesive tax framework.
This strategic alignment of Sales Tax, Income Tax, and Federal Excise laws is pivotal, streamlining administrative processes and creating a unified experience for taxpayers. The move is expected to bolster Pakistan’s ease of doing business index, reflecting positively on the nation’s business environment and potentially attracting more investors.
One of the noteworthy features introduced by the FBR is the Alternate Delivery Channel (ADC) payment mode, designed to offer taxpayers a convenient way to make payments without physically visiting a bank. ADC enables taxpayers to pay all federal taxes and duties, including Income Tax, Sales Tax, Customs duty, and Federal Excise Duty, through various channels such as internet banking, ATMs, mobile banking, and contact centers.
The ADC payment mode aligns with global trends in digital payments, providing a secure and user-friendly avenue for taxpayers to fulfill their financial obligations to the government. This innovation is expected to improve the overall tax payment experience, promoting financial inclusion and reducing the burden on taxpayers.
To ensure a smooth transition, the FBR has implemented a dual approach for individual taxpayers. Until September 30, 2021, individuals can choose between the alternate facility of making payments over the counter (OTC) or utilizing the ADC channel. This interim arrangement aims to minimize inconvenience for individual taxpayers, allowing them flexibility in filing returns seamlessly.
The FBR’s latest initiatives demonstrate a commitment to modernizing tax administration, aligning with global best practices, and enhancing the overall taxpayer experience. By adopting a unified identifier and introducing online payment channels, the FBR not only aims to streamline processes but also endeavors to create a more taxpayer-friendly ecosystem, contributing to the growth and development of Pakistan’s economy.
