FPCCI conveys: reservations to FBR…Unregistered persons not willing to provide NTNs

RECORDER REPORT

ISLAMABAD: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has conveyed its reservations to the Federal Board of Revenue (FBR) that the unregistered persons are not willing to provide their National Tax Numbers (NTNs) under section 153A of the Income Tax Ordinance 2001.

It is learnt here on Friday that the FPCCI has written a letter to Asrar Rauf Senior Member Policy FBR in this regard.

According to the FPCCI, the problems are being faced by manufacturers due to the amendment made under section 153A of the Income Tax Ordinance 2001 through the Finance Act 2012, requiring them to deduct withholding tax @ 0.5 percent and furnish NTN of distributors, dealers and wholesalers both from registered and unregistered buyers at the time of sale to them.

The unregistered persons are not willing to provide NTN and the registered persons are not in a position to terminate business with them, as huge receivable amounts are to be taken from unregistered buyers from past transactions. The applicability of the section 153 A (I) will lead to chaos, confusion and bankruptcy for the registered persons.

It is therefore, suggested that the amendment made U/S 153A of Income Tax Ordinance 2001 vide Finance Act 2012, requiring NTN/CNIC from unregistered buyers may be withdrawn, the FPCCI added.