Pkrevenue.com

Tag: CNIC

  • Tax evading manufacturers, commercial importers supporting traders’ protest

    Tax evading manufacturers, commercial importers supporting traders’ protest

    ISLAMABAD: A large segment of tax evaders in manufacturing sector and commercial importers are behind the traders’ protest in order to force tax authorities to withdraw condition of computerized national identity card (CNIC).

    The condition of CNIC has been introduced in order to identify persons in supply chain and plug leakages of revenue from manufacturing stage to end-consumers.

    In recent surveys of the Federal Board of Revenue (FBR) it has been identified that markets are flooded with goods from domestic and import sources and without payment of duty and taxes.

    Sources in FBR said that some manufacturers and importers were supplying unreported goods to such retailers, which sold to end-consumers without payment of duty and taxes.

    The traders do not want to become part of documented economy on the behest of manufacturers or commercial importers in order to shelter the tax evasion.

    In the past several measures were taken by the government to bring retailers into the tax net but all the times such efforts ended in a failure.

    The latest wave of protests by the trade community is another bid to force the FBR to bow down their demand. But this time, the FBR chairman, who is from private sector, is committed to bring traders into the tax net.

    The traders on Wednesday announced to observe a countrywide shutter-down strike on October 28 and 29, following the failure of talks with FBR officials.

    A protest demonstration was held by the traders against the tax reforms introduced by the government.

    The protesting traders attempted to move towards the FBR Headquarters.

    However, the police stopped the protesters at the Serena Chowk, where they observed a sit-in.

    A few enraged protesters attempted to cause damage to the public properties and tried to remove barbwires in the area.

    This prompted the law enforcers to baton-charge the protesters. Meanwhile, the FBR decided to hold talks with the protesters, but they failed to yield any results.

    The leaders of the protesting traders’ community claimed that the FBR is not ready to listen to their demands and added that they will not pay unjust tax.

    They further that the business community will not accept the condition of presentation of a copy of their CNICs for the sale and purchase of goods.

    The traders hoped that the present government led by Pakistan Tehreek-e-Insaf (PTI) would reconsider their demands and will provide them the fix tax scheme.

  • FBR warns sellers against using CNICs of employees to fulfill condition

    FBR warns sellers against using CNICs of employees to fulfill condition

    ISLAMABAD: Federal Board of Revenue (FBR) has warned sellers against using CNIC/NTN of their employees to fulfill condition in case supplies made to unregistered persons.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 106/2019 regarding definition / rules for CNIC/ good faith for sales tax.

    Keeping in view the problems reported by the registered persons is ensuring proper identity of the buyer to fulfil the requirement of reporting NTN/NIC of the buyer in terms of section 23 of the Sales Tax Act, 1990, it is directed that the NIC/NTN of the buyer with respect to taxable supplies to an unregistered person shall be deemed to have been reported in good faith by the supplier provided that:

    (a) The tax invoice complies with the requirements of section 23(b) of the Act.
    (b) Payment made by or on behalf of the unregistered purchaser of the amount of the tax invoice, inclusive of sales tax and applicable further tax, is deposited into the supplier’s declared business bank account.
    (c) The NIC provided by the purchaser is found authenticated by the National Data and Registration Authority (NADRA).
    (d) The NIC/NTN provided is not of the employee of the seller or of his associates as defined under the Income Tax Ordinance, 2001.

    The issuance of a show cause notice to a registered person being a seller on account of any matter arising out of the NIC provided by a purchaser shall not be made without the prior approval of the Member (IR-Operations), FBR after providing an opportunity of being heard.

  • CNIC condition on purchases remain part of law, deferred till September: FBR chairman

    CNIC condition on purchases remain part of law, deferred till September: FBR chairman

    KARACHI: The chairman of Federal Board of Revenue (FBR), Shabbar Ziaid on Wednesday said that condition of providing Computerized National Identity Card (CNIC) on purchase of above Rs50,000 is remain part of law.

    “However, its application has been deferred till September 30,” he said at an event organized by Management Association of Pakistan (MAP).

    He categorically said that the condition would not be withdrawn and he termed that it would result in massive compliance by persons having taxable income but not on the tax roll.

    The FBR chairman said that due to measures taken by the revenue body the number of return filers had increased beyond 2.5 million.

    He said that the tax authorities were making all out efforts to make procedure easy for return filing to further increase the number of return filers in the country.

    The chairman said that much of work against benami assets had been done. “The FBR is further accelerating actions against benami assets holders,” he added.

    He said that the prime minister had also issued instructions to take action against holders of Benami assets.

    Besides, he said, banks were also asked to provide details of benami bank account holders.

    The chairman said that the FBR had launched monitoring sales and purchases in sales tax and federal excise regimes.

    Shabbar Zaidi said that in order to resolve the issues of small traders, two different schemes had been proposed.

    He said that that efforts had been made to bring people in all sectors of economy into tax net. In this regard notices have been issued to educational institutions, doctors, engineers and lawyers.

  • FBR defers action against traders till September 30

    FBR defers action against traders till September 30

    ISLAMABAD: Federal Board of Revenue (FBR) has decided not to take any adverse action under tax laws against traders till September 30, 2019 regarding information obtained through Computerized National Identity Card (CNIC).

    FBR Chairman Shabbar Zaidi held a meeting with all groups of traders of Pakistan on Thursday at FBR and discussed various issues about the traders.

    It has been agreed with consensus that no adverse action under the Income Tax Ordinance 2001 and Sales Tax Act, 1990 will be undertaken against the traders merely on the basis of information emanating from providing of CNIC under the Sales Tax Act, 1990 as required under the Finance Act, 2019 for traders till September 30, 2019.

    There will be discussion between the associations and bodies of the traders for the finalization of Scheme for small shopkeepers for which drafts have been furnished by various trade bodies which will be taken into consideration by the FBR.

    The condition of obtaining CNIC number for unregistered persons at the time of supplies by registered person was to applicable from August 01, 2019.

    The condition has been proposed to be applicable from July 01, 2019 through Finance Bill 2019.

    However, through Finance Act, 2019 this condition was to applicable from August 2019.

    An amendment has been introduced through Finance Bill 2019 to Section 23 of Sales Tax Act, 1990 under which it was now required specifically to mention particulars on invoices in Urdu or English language.

    Tax Invoice is also required to reflect CNIC Number of recipient in case supplies are made to unregistered person.

    The Finance Bill 2019 also proposed to require a supplier of textile yarn and fabric to mention count, denier and construction, in addition to description, on tax invoice at the time of making taxable supply.

  • Female consumers can present CNIC of husband, father for purchase above Rs50,000: FBR

    Female consumers can present CNIC of husband, father for purchase above Rs50,000: FBR

    ISLAMABAD, February 20, 2024 – The Federal Board of Revenue (FBR) has issued a clarification stating that female consumers can present the CNIC of their husband or father when making purchases above Rs50,000.

    (more…)
  • No compromise on documentation of economy: FBR chairman

    No compromise on documentation of economy: FBR chairman

    ISLAMABAD: Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) on Friday said that the government will not compromise documentation of economy by surrendering condition of CNIC on purchases.

    He said that the condition of CNIC had been enforced on purchases above Rs50,000.

    Speaking at a seminar organized by Sustainable Development Policy Initiative (SDPI) on Wednesday, he said that priority of the government was to enhance the tax net and expend tax base to documenting the country’s economy. And taxation is the only way to forward for equitable distribution of wealth, as we cannot have stabilized and equitable society unless we have a fare taxation system, he added.

    The FBR chairman said that due to presumptive tax regime, we actually dissociated the taxation from the economy, where taxing the real income was out of question.

    The incumbent government and the International Monitory Fund (IMF) are on the same page, as there was no disagreement by the government on the measures proposed by the IMF, especially the taxation measure, he said.

    The chairman said that the government would not bow down against the pressure, protests and lame excuses of the businesses and industries.

    Over the decades the policies of the successive governments make Pakistan a trading state rather a sami-manufacturing state, where the country is importing everything from mineral water to foods items and never worked-out on import substitution.

    While raising the concerns over the open transit trade agreement with Afghanistan, he said the agreement was being exploited and abused by the smugglers which negatively impacted the local industry.

    Pakistan needed to review this agreement and should take stringent measures to control illicit trade on Pak-Afghan border, he said.

    There are around 100 thousand companies registered with the government of Pakistan, where only 60 thousands file their returns, which shows the level of tax compliance.

    He said the measures taken in the current federal budget would fundamentally change the course of history of Pakistan.

    The government was taking steps to redress the institutional corruption through automation of the taxation system, the Chairman FBR said.

    He said that it is his responsibility to improve the tax base under the leadership of Prime Minister Imran Khan.

    Hawala and Hundi have inflicted a huge loss on the country’s economy,” he said and added measures were being taken to include the middle class in the tax net.

  • FBR taking all measures to broaden tax base: Shabbar Zaidi

    FBR taking all measures to broaden tax base: Shabbar Zaidi

    Syed Shabbar Zaidi, Chairman of the Federal Board of Revenue (FBR), addressed the media on Friday, affirming the government’s commitment to expanding the tax base while ensuring that no sector of the economy is unduly burdened.

    (more…)
  • Finance Act 2019: CNIC condition for sales tax invoices applicable from August 01

    Finance Act 2019: CNIC condition for sales tax invoices applicable from August 01

    KARACHI: The condition of obtaining CNIC number for unregistered persons at the time of supplies by registered person will be applicable from August 01, 2019.

    The condition has been proposed to be applicable from July 01, 2019 through Finance Bill 2019.

    However, through Finance Act, 2019 this condition now will be applicable from August 2019.

    An amendment has been introduced through Finance Bill 2019 to Section 23 of Sales Tax Act, 1990 under which it was now required specifically to mention particulars on invoices in Urdu or English language. Tax Invoice is also required to reflect CNIC Number of recipient in case supplies are made to unregistered person.

    The Finance Bill 2019 also proposed to require a supplier of textile yarn and fabric to mention count, denier and construction, in addition to description, on tax invoice at the time of making taxable supply.

    According to commentary on Finance Act, 2019 issued by PwC A F Ferguson Chartered Accountants NTN or CNIC are now required to be mentioned in tax invoice in respect of supply to unregistered persons.

    In the Finance Bill 2019, only CNIC was proposed to be mentioned on tax invoice.

    Further through Finance Act 2019, such requirements have been made effective from 1st August, 2019.

    However, an exception from such requirement has been introduced through the Finance Act for supplies made by a retailer where the transaction value inclusive of sales tax does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    The term ‘Ordinary Consumer’ has also been explained in the Finance Act as a person who is buying goods for his own consumption and not for the purpose of re-sale or processing. It has been further provided in the Finance Act that in case it is subsequently proved that CNIC 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.

  • US Dollar investment certificates launched for overseas Pakistanis

    US Dollar investment certificates launched for overseas Pakistanis

    ISLAMABAD: Prime Minister Imran Khan launched the ‘Pakistan Banao’ US Dollar Certificates exclusively for overseas Pakistanis in a ceremony held here on Thursday.

    (more…)
  • Profit on Debt: FBR makes mandatory for banks to provide details of account holders

    Profit on Debt: FBR makes mandatory for banks to provide details of account holders

    Islamabad, January 10, 2019 – The Federal Board of Revenue (FBR) has issued a new mandate that compels banks to provide details of individuals receiving profits on their deposits exceeding a certain threshold.

    (more…)