Karachi, December 16, 2023 – The Federal Board of Revenue (FBR) in Pakistan has issued a significant directive, making it mandatory for businesses to display their National Tax Number (NTN) at their respective places of operation during the tax year 2024.
This move comes as part of the FBR’s efforts to enhance tax compliance and transparency in commercial activities across the country.
The FBR’s decision is outlined in the updated Income Tax Rules, 2002, specifically addressing the displaying and quoting of NTN certificates under Rule 83. According to the revised rule:
(1) Display of NTN: Every individual or entity deriving income from a business subject to taxation, and holding a valid National Tax Number Certificate, is now required to prominently display the NTN at each place of business. This move is aimed at increasing visibility and ensuring that tax identification information is easily accessible for verification purposes.
(2) Quoting NTN: In addition to displaying the NTN, individuals or entities falling under sub-rule (1) are obligated to quote their National Tax Number in various circumstances, including:
• (a) All commercial transactions entered into by the person.
• (b) Cash memos issued as per Rule 30.
• (c) All returns, statements, and other documents mandated under the Ordinance, along with any correspondence with the Commissioner.
• (d) Documents related to the person’s business, specifically involving:
• (i) All new connections of utilities, such as water, gas, electricity, and telephone.
• (ii) The initiation of a loan agreement with a banking company or financial institution.
• (iii) Opening letters of credit.
• (iv) The transfer of urban immovable property.
The FBR’s emphasis on displaying and quoting the NTN in various business activities is designed to streamline tax administration, discourage tax evasion, and facilitate the tracking of financial transactions. This move is aligned with the broader objective of fostering a more transparent and accountable tax regime in Pakistan.
Business owners and stakeholders are expected to promptly adhere to the new requirements to avoid penalties or legal implications. The FBR has indicated that strict enforcement measures will be taken to ensure compliance with these rules, and any violations will be dealt with in accordance with the law.
As the tax year 2024 unfolds, businesses across Pakistan will need to implement these changes in their operations and documentation processes. The FBR’s move is seen as a proactive step towards building a more robust tax infrastructure that fosters economic growth while ensuring that all entities contribute their fair share to the national revenue.
