FBR to Impose Penalties on Businesses for Not Displaying Tax Numbers or Licenses

FBR to Impose Penalties on Businesses for Not Displaying Tax Numbers or Licenses

Karachi, September 13, 2023 – The Federal Board of Revenue (FBR) has announced strict measures to ensure that businesses display their National Tax Numbers (NTNs) and tax licenses prominently. Those failing to comply will face financial penalties.

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Sources within the Federal Board of Revenue revealed that the display of NTN or tax licenses has now become mandatory for all businesses. According to the Income Tax Ordinance of 2001 and the accompanying regulations, any individual or entity not displaying their NTN or business license at their place of business will be subject to a penalty of five thousand rupees.

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Section 181C of the Income Tax Ordinance, 2001, elaborates on the requirement for individuals deriving income from taxable businesses to prominently display their National Tax Number at every location of their business.

Furthermore, the provisions for business licenses are explained under Section 181D of the same ordinance. According to this section, any person engaged in a business, profession, or vocation must obtain and prominently display a business license as specified by the FBR.

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In case an individual fails to obtain a business license, the Commissioner is empowered to impose a fine, which may vary depending on the circumstances:

Twenty thousand Rupees for taxpayers deriving income subject to tax under this ordinance.

Five thousand Rupees for all other cases.

Additionally, the Commissioner has the authority, through a written order, to cancel a business license issued under sub-section (1) under specific conditions, including:

(a) Failure to report changes in particulars within thirty days of such changes.

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(b) Conviction of any offense under any federal tax law.

The FBR’s move to enforce these regulations aims to enhance transparency and compliance among businesses, ensuring a fair and effective tax system. Business owners are urged to adhere to these requirements to avoid penalties and maintain legal compliance with tax laws.

For more information and guidance regarding the display of NTNs and business licenses, individuals and businesses are encouraged to contact the Federal Board of Revenue.

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