CNICs/NTNs condition FBR defers decision for two months

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue on Thursday night suspended implementation of a major documentation measure for all categories of taxpayers by not demanding Computerised National Identity Card numbers or National Tax Numbers (NTNs) of unregistered buyers and sellers.

Sources told Business Recorder here on Thursday that the FBR has suspended the decision of collecting CNICs/NTNs from the un-registered buyers and sellers for a period of two months. The FBR will not collect this information for the tax periods of September and October 2011 and sales tax returns to be filed on November 15, 2011 would not be required to submit CNICs/NTNs of the un-registered buyers and sellers.

In this connection, the FBR has suspended the implementation of SRO 821(I)/2011 for all taxpayers including manufacturers for a period of two months. The FBR will issue instructions to the field formations about the suspension of the implementation of SRO 821(I)/2011.

According to sources, the documentation measure has been suspended for a period of two months for all categories of taxpayers irrespective of nature of business. The decision would be implemented across the board and CNICs/NTNs of the un-registered buyers/sellers would not be collected from all categories of taxpayers. Irrespective of the nature of business, the documentation measure has been suspended for all kinds of taxpayers. Now, the concession is not limited to only sugar sector, but extended to all sectors/industries.

In the meantime, the FBR would complete the nation wide consultative process with the business and trade on the submission of the NTNs/CNICs of the un-registered buyers/sellers of all leading sectors. In this way, the FBR would be able to convince the business community particularly manufacturers to ensure submission of the NTNs/CNICs of their un-registered buyers/sellers. During this period, the FBR is in the process of interacting with all chambers, trade bodies and tax bar associations to ensure compliance of this documentation measure in future, sources added.

Tax authorities are visiting all cities like Karachi, Lahore and other big cities to ensure compliance of the SRO 821(I)/2011 by all manufacturers and other categories of taxpayers.

Under SRO 821(I)/2011, the FBR had directed that registered manufacturers, importers and exporters, making taxable or dutiable supplies to unregistered persons, shall issue an invoice containing "computerised National Identity Card number or National Tax Number" of such unregistered persons.