Islamabad, June 20, 2025 – In a landmark move to modernize its identity management infrastructure, Pakistan has officially enforced new rules governing the issuance and regulation of the Computerized National Identity Card (CNIC), aimed at ensuring enhanced transparency, security, and efficiency across the national database.
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FAP demands dollar exchange without CNIC condition
KARACHI: Forex Association of Pakistan (FAP) on Monday demanded the government of allowing US dollar exchange without the condition of Computerized National Identity Card (CNIC) in order to ensure sufficient supply of the foreign currency.
In a statement issued by FAP President Malik Mohammad Bostan said an estimated amount of $3 billion were taken at home safes and bank lockers. “People want to exchange the foreign currency but without CNIC condition,” he added.
READ MORE: FAP suggests incentive to undeclared $3 billion
Bostan said prior to 2008 under Protection of Economic Reform Act, many people purchased the foreign currency and parked at foreign banks and also had taken at homes or bank lockers. “At that time there was no condition CNIC,” he added.
“If this condition is relaxed then exchange companies will able to purchase huge amount of dollars and other foreign currency from public,” Bostan said.
READ MORE: Dollar hits record high Rs194 in midday trading
FAP President said the government should allow purchase of gold from local market. “They may sale gold in international market and surrender foreign currency in the local market.”
There is need to channelize foreign currency invested in cryptocurrency, he said and demanded that the government should provide legal cover to bring foreign currency back home.
READ MORE: Pakistan’s forex reserves fall to $16.37 billion
He suggested that banks should stop forward dollar selling and should be allowed to sale dollar equivalent to purchase.
Bostan said the State Bank of Pakistan (SBP) should imposed 100 per cent cash margin on all imports except for necessary items.
READ MORE: Pakistan receives record monthly high $3 billion as remittances
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Retailers share CNICs of consumers with FBR
ISLAMABAD: Retailers registered with Federal Board of Revenue (FBR) have started obtaining detail of Computerized National Identity Card (CNIC) of consumers, who buy goods above Rs100,000, tax officials said.
The sources on Tuesday said that retailers having sales tax registration number (STRN) were providing details of ordinary consumers on sale of goods above Rs100,000 through their monthly sales tax return.
The threshold amount was increased from Rs50,000 to Rs100,000 through Finance Act, 2020.
The sources said that through Finance Act, 2019 an important amendment was inserted to Sales Tax Act, 1990 under which it was made mandatory for registered retailers to collect information of ordinance consumers.
The FBR explains ordinary consumer as a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing.
The retailers are required to collection information of retailers including name, address and CNIC etc.
This condition of CNIC or NTN was to apply from August 01, 2019. However, business community had demanded to extend the application of the condition of NTN besides it was also demanded to increase the threshold for requirement of CNIC.
The FBR explained the implementation of the CNIC through Circular No. 01 of 2019 dated July 26, 2019 that Section 23 of the Sales Tax Act, 1990, relating to issuance of invoices and particulars to be specified therein, has been amended to provide that in case of supplies to un-registered persons, their NIC or NTN number shall be specified in invoice.
The caveats, provided therein, are as under: NIC or NTN shall not be required in case of supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand and the sale is being made to an ordinary consumer buying goods for his own consumption and not for the purpose of resale or processing;
If it is subsequently proved that NIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.
The FBR through Sales Tax Circular No. 02 of 2019 issued clarification in this regard stating that it had been observed in many cases, suppliers of goods and services are charging sales tax on invoices/receipts without identifying their sales tax registration number (STRN) on the invoice/receipts issued to the customers. At times, National Tax Number (NTN) is indicated on invoices, to exhibit that the suppliers is registered.
Customers are suggested to ask for invoices/receipts having sales tax number on the invoice/receipts on purchase of goods and services. Sales tax can only be recovered from the customer if the supplier is registered for sales tax purpose, and reflects the STRN on the invoice/receipt issued to the customer.
“In other cases, the supplier is not entitled to recover sales tax from the customers. Customers should beware of the same.”
Explaining the purpose of the clarification, the FBR said that may suppliers were charging sales tax from customers without getting them registered under the sales tax regime.
This practice is against the law and is liable to penal action. This practice leads to increase in prices and undue enrichment of sellers without any deposit of tax with the government. Customers are suggested to seek invoice/receipts from suppliers with STRN on the invoices/receipts issued, if sales tax is charged on their purchases.
The FBR further clarified that buyer is not required to provide his NIC in case of purchases from a person not registered for sales tax.
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CNIC condition reduces transactions and revenue: FBR
KARACHI: Federal Board of Revenue (FBR) has admitted that the condition of Computerized National Identity Card (CNIC) reduced number transactions as well as shortfall in revenue.
“This [CNIC] condition has further reduced transaction and our revenue,” Dr, Muhammad Ashfaq Ahmed, Member, Inland Revenue, Federal Board of Revenue (FBR) quoted as saying in a statement issued by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) issued on Tuesday.
The statement further quoted the Member that the FBR so far has resolved CNIC issues with the retailers and conditions will remain applicable at some stages.
While responding to the issues raised by President FPCCI, the Member said that taxation is a by-product of business which is missing in our strategy, refunds are considered as oxygen for trade and industry while in practice to show revenue we ignored to payback refunds.
The FBR is now following open door policy to facilitate industry and transparency is first in our strategy.
He further said that FBR is changing its approach to deal with commercial exporters. He further agreed to extend the days of filing form H from 120 to 180 days.
However, with the automation of FBR the trade and industry have to gear-up and be compatible with the latest technology.
Earlier, FPCCI President Mian Anjum Nisar appreciated the efforts of Federal Board of Revenue on achieving revenue targets despite difficult circumstances under COVID-19 pandemic.
While welcoming the Member Inland Revenue (Operation) Dr. Muhammad Ashfaq Ahmed, the President FPCCI said that the release of refunds has slightly improved but industry paid taxes and salaries during the period when labour was idle and industries were stalled.
He mentioned that irrespective of gain or loss businesses have to pay 1.5 percent tax despite the issue has been discussed with Advisor to PM and Chairperson FBR but matter still not resolved.
It was also informed that FASTER will release refunds within 72 hours but practically refunds are being released within 72 hours.
Further President FPCCI strongly suggested extending the filing of Form “H” period from 120 days to 180 days, and demanded a focal person to deal with affairs relevant to FASTER.
He also raised a question on shifting of final tax regime to minimum tax and proposed to reversed if there is no conditionality and payback refunds or ask for amount if due and vice versa, he also proposed to NTC deal issue of raw material that were previously falls under 12th schedule and demanded restoration of SRO 1125.
Mian Anjum Nisar President FPCCI also raised the issue of Audit at different tiers and proposed that stages/tiers level of audit should be minimized.
CNIC still has not resolved despite available agreement between businesses and government. President FPCCI also raised issues of different sectors such inclusion of Edible Offal in the definition of Agriculture, inability of FATER system for processing of Multi-tax period carry-forward based sales tax refunds. Uniform rate of tax on Iron and Steel flat products and issue of Audit being faced by trade and industry.
Meeting was attended by representative of various chambers and association, Kurram Ijaz, Vice President, Zakaria Usma, Shaukat Ahmed, Ghani Usman, Saqib Fayyas, Shabir Mensha, Khursheed, member FPCCI Advisory Committee, Khuram Saeed, former Vice President FPCCI, EC and General Body members.
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CNIC condition on sales up to Rs100,000 relaxed to facilitate retailers: FBR
ISLAMABAD: Federal Board of Revenue (FBR) has said that the retailers are not required to maintain information of Computerized National Identity Card (CNIC) of a consumer on sales not exceeding above Rs100,000.
The FBR issued Sales Tax Circular No. 01 dated August 06, 2020 to explain changes brought to main statute through Finance Act, 2020.
The revenue body said that through the Finance Act 2019, Section 23 of Sales Tax Act, 1990 was amended by inserting the condition of mentioning of CNIC of the unregistered purchaser on the invoice.
The measure was introduced to broaden the income as well as sales tax base.
However, in case of supplies by a retailer to end consumers, the requirement was applicable if the transaction value exceeded Rs50,000.
“Many representations were received stating that the retailers are facing hardship in obtaining CNIC of the buyers/ customers,” the FBR said.
Hence, amendment in section 23 has been made for enhancing the threshold from Rs50,000 to Rs100,000.
“Now, it would not be compulsory for the retailers to mention NIC of buyer if transaction value does not exceed Rs100,000 where supply is made to an ordinary consumer,” the FBR added.
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Commercial importers demand abolishing CNIC condition, FTR restoration
KARACHI: Commercial importers have demanded the government of abolishing condition of Computerized National Identity Card (CNIC) and restoring Final Tax Regime (FTR) in order to save businesses from adverse impact of COVID-19.
Amin Yousuf Balgamwala, Chairman Pakistan Chemical Dyes and Merchants Association (PCDMA) and former Director of Karachi Stock Exchange has appealed to Prime Minister Imran Khan to restore FTR and SRO 1125 in the upcoming budget 2020/2021 in the best economic interest of the country so that trade and industry can be saved from complete destruction due to ongoing COVID-19 pandemic.
In an appeal to Prime Minister, Balgamwala said that the business of commercial importers has been ruined as a result of corona lockdown and severe economic crisis.
For the prevention of this pandemic all over the world including Pakistan were announced a lockdown to save the lives of masses.
Due to closure of industries and markets, the capital of commercial importers was stuck and now the situation has reached such a stage that commercial importers do not even have the funds to revive the import of raw material.
“If import of raw material would be stopped then it will be very difficult to supply raw material to export-oriented industries accordingly their requirement especially textile sector, which is the backbone of Pakistan economy, as country economy is already suffering from serious crises so if there is a shortage of raw materials, the production activities of the export-oriented industries including textile sector will also be hampered which will have a very negative impact on the country’s exports,” he pointed out.
PCDMA chairman questioned pursuing a pick and choose strategy by the government and said that it is a matter of concern for the business community but the government should understand the delicacy of the current extraordinary situation and provide relief to all sectors of economy.
“Whether it is the export sector or the import sector, the government should provide relief across-the-board without any discrimination so that the businesses and industries affected by the COVID-19 pandemic can get stand up again on their feet,” he opined.
Amin Balgamwala demanded the Prime Minister to abolish the CNIC condition on sale of goods to unregistered persons and said that if immediate relief was not given to commercial importers, they would be forced to close their business. In addition to reinstating SRO 1125, chairman PCDMA also demanded to restore a fixed tax regime (FTR), which is the only way to save trade and industry from collapse.
He also requested to keep petrol pumps open 24 hours a day for uninterrupted supply of raw materials to the industries and appealed to the Prime Minister to allow business 6 days a week also so as to offset the losses caused by the corona lockdown.
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FBR suggested to abolish further sales tax on fulfilling CNIC condition
KARACHI: Federal Board of Revenue (FBR) has been proposed to abolish further sales tax in case taxpayers fulfil condition of Computerized National Identity Card (CNIC).
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Immunity from audit against CNIC condition demanded
KARACHI: The business community has demanded the Federal Board of Revenue (FBR) to give immunity from audit against CNIC condition for tax year 2020.
In its budget proposals for fiscal year 2020/2021, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) demanded amnesty from audit against Computerized National Identity Card (CNIC) condition for tax year 2020.
The FPCCI said that the condition of CNIC on unregistered sales was introduced in the Finance Act 2019 but it was not implemented in its true spirit because of various reasons.
The FPCCI highlighted that in July 2019 was initially exempted of CNIC condition through legislation.
From August 2019 to January 2020, the condition was relaxed through agreement between shopkeepers and FBR.
Thereafter, from late February 2020 till unforeseen future, there has been tremendous pressure on the markets due to complete lockdown of the whole country because of the ongoing COVID-19 pandemic.
The FPCCI said that CNIC condition has been causing cashflow issues since its implementation which will further intensify during the current pandemic of COVID-19, especially for registered taxpayers.
Therefore, in order to facilitate the registered Taxpayer, a general amnesty through legislation is requested in the next budget regarding CNIC condition for the whole tax year 2020 starting from August 2019 to June 2020.
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Karachi Chamber advocates unregistered transactions
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) reiterated demand for eliminating condition of Computerized National Identity Card (CNIC) and allow unregistered persons to make purchases freely.
KCCI President Agha Shahab Ahmed Khan in a statement on Monday urged the government to immediately waive CNIC requirement for sales to unregistered persons and three percent further tax in order to revive the economic activities and business transactions.
In a letter sent to PM’s Advisor on Finance & Revenue Dr. Abdul Hafeez Shaikh, President KCCI said that waiver of CNIC condition and 3 percent Further Tax would result in release of major stockpiles of commodities and consumer goods into the markets and revenue collection will improve through liberalization of transactions.
“Small and Medium Industry will also benefit as a result of such measure because a very large volume of raw materials is supplied to SMEs by commercial importers who are stuck with inventories. In order to stimulate the economy, an across the board relief is required rather than selective assistance to already favored sectors,” he added.
President KCCI pointed out that in the Finance Act 2019, an amendment was made to Section 8 (Sub-Sec.1, Clause M) of Sales Tax Act, by addition of 10th Schedule, whereby it is mandatory to provide CNIC number of unregistered buyers in the invoice and Sales Tax Returns in addition to payment of 3 percent Further Tax. Similar statute has been added U/S.19A of Federal Excise Act, Sec.216A to Income Tax Ordinance and Sec.156A of Customs Act.
He noted that since the number of registered persons in Sales Tax regime stood hardly at around 45,000 all over Pakistan, it is not possible for suppliers/ sellers and manufacturers to provide the CNIC of buyers on account of all their sales. This condition has resulted in a slowdown of business transactions and proliferation of cash economy.
Agha Shahab said that the situation has further aggravated due to country-wide lockdown and disruption in supply chain due to the outbreak of coronavirus. Consequently, stocks and inventories with importers, manufacturers and wholesalers are accumulating while recoveries from markets have completely stopped and a large number of bank defaults are likely to take place due to liquidity crunch.
Unfortunately, while giving major relief to export sectors which hardly contributes 5 to 6 percent to GDP, the government has entirely ignored the larger sectors of industry and trade catering to domestic markets and contributing 94 percent to GDP and major part of tax revenue, he said, adding that it will prove to be detrimental for revenue collection by the FBR if the business transactions remain stalled while the government would surely miss the revenue targets and incur larger fiscal deficit as a result of imposition of CNIC provisions and 3 percent further tax.
“Hence, as a relief measure, the requirement of CNIC for sales to unregistered persons and 3 percent Further Tax has to be waived immediately in order to revive the economic activities and business transactions”, Agha Shahab stressed.
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FBR urged to defer CNIC condition for six months
KARACHI: Business community has urged Federal Board of Revenue (FBR) to defer CNIC condition on purchases above Rs50,000 for at least six months.
In a statement Saquib Fayyaz Magoon, Convener of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing committee on Sales Tax and Chairman Indenters Association of Pakistan (IAOP), urged Government to pay attention on economic crises due to lockdown for prevention of coronavirus pandemic and has demanded Prime Minister to defer CNIC Condition for 6 months on sale of goods to unregistered persons in view of the current economic crisis.
Magoon Said due to situation caused by the coronavirus, all payments to exporters have been stopped and export orders canceled while the economic activities have also stopped. While there has been a severe crisis of cash flow in the market, therefore, by defer the condition of the CNIC will improve the cash flow situation, otherwise there will be another major financial crisis.
He also requested the government to accept sales tax returns without CNIC and said that in the current economic crisis, now we will depend largely on the local consumer industry, who are already in crisis due to the CNIC condition.
Prime Ministers adviser on commerce Abdul Razzaq Dawood in which he assured that cash flow would not be affected by the Coronavirus.
So if he wants the cash flow not affected then CNIC Condition must defer for minimum six months so that business activities can be restored as usual.
Magoon pointed to the difficulties facing the businessman community over the ban on courier companies due to the lockdown, said the original document of import shipment could not be reached in the banks.
So as long as the lockdown is in place, the State Bank should issue clear instructions to the banks that the EIF be approved on the copy of the document to ensure uninterrupted clearance of imported goods. Because the original documents are required for EIF approval.
Due to not being provided original documents is causing constraints and importers are not able to file a GD which is causing consignment storage and shed charges.
Saquib Fayyaz Magoon appealed the Prime Minister Imran Khan that in view of the serious situation caused by the coronavirus, a directive should be issued to the State Bank that the EIF be approved on the copy of the document at the time of payment by the importers to the banks.