Islamabad: The FBR Federal board of Revenue latterly imposed a condition to present a ID card copy on the purchase of over 50000 PKR.today the federal board of Revenue has announced to show national identity cards CNIC on the shopping of more than 50000 rupees from a registered sales tax seller's effect from today.
Incase of females buyers, they don't need to show thre their identity cards on the shops , they can show a national identity card of their brother, father or husbands as it is clearly mentioned in July 2019 FBR notification and it will not be applicable on less than 50K shopping.
Why CNIC is required
As every body knows now a days we are facing the economic crunch,payment shortfalls less tax collection so Pakistan government decided with the help of federal bureau revenue FBR to impose this CNIC condition.
This condition will ensure the business to business transactions and some transactions of higher values more than 50K. This condition will give benefit in order to avoid the ghost and fictional business transactions that caused the massive loss in the sales tax collection.
It is mandatory to show a CNIC on the purchaser of more than 50000 PKR ,it was clarified in the FBR tax circular in the sales tax amendments Act.
As per the amendment, if a purchase is made from a sales tax registered person, the CNIC number of the buyer is to be provided in limited situation. Provision of CNIC identity number does not mean that purchaser has to be a registered person under the sales tax law. Sales to unregistered person can be made. if it is afterwars proved that CNIC provided by the purchasing person was not correct, liability of loss or penalty will not arise against the seller in case the sale is made in good faith.
Who will be affected
As it is clearly mentioned this condition is imposed only on the sales tax registered person so it will applicable only for the sales tax registered seller's.
If we talk about the Pakistani business market, most of the peoples business will not affect because of low values business transactions between the sellers and the buyers.
However no action will be taken without approval of area chief commissioner,however a strict action will be taken if some one is using the Fake identity cards for the record purposes.
