The Federal Board of Revenue (FBR) has issued Sales Tax circular related to condition of Computerized National Identity Cards (CNICs) and stated that there was countrywide demand for decades to bring all people in the tax system and gradually convert CNIC as a National Tax Number (NTN).
The amendment has been made to the Sales Tax Act 1990 (Section 23) and not in any other taxation status. This clearly means that provision is only applicable if purchase are made from a sales tax registered person. At present, there are only 41,484 sales tax registered persons who are actually paying some tax with their returns.
The condition will not apply if the value of purchases is below Rs50,000 in case sales is being made to an ordinary consumers. The term ordinary consumers is well defined. “FBR is fully conversant of cultural constraints and traditions of the country,” the notification states, “Therefore, in case of purchase of Rs. 50,000 by an ordinary consumer being a female, the CNIC of the husband or the father will be considered valid for the purposes.”
The FBR officials later explained that this only applies to women who do not have a valid CNIC or those who do not want to share their CNIC details or those who do not have an independent income, due to which they will not be registered in the tax network.
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27 September, 2019