CNIC number, NTN on invoices to unregistered persons: FBR arms itself with legal backing

The Federal Board of Revenue (FBR) has obtained legal backing to implement the most important documentation measure to obtain 'Computerised National Identity Card Number (CNIC) or National Tax Number (NTN) of unregistered persons to whom sales tax invoices have been issued by registered manufacturers, importers and exporters.
In this connection, the FBR has issued SRO 821(I)/2011 on Wednesday to enforce the biggest documentation measure across the country. According to the decision, the FBR has notified major amendments in the sales tax law on the pretext of broadening the tax base, which is one of the important measures to increase the number of sales tax registered persons. Now, all registered manufacturers, importers and exporters are compulsorily required to provide CNIC or NTN against taxable supplies to the unregistered buyers. In this way, the FBR will be able to compile comprehensive database of unregistered persons to enforce and ensure sales tax registration of un-documented sectors.
When contacted, tax experts said that the Board has basically forced to introduce this notification after strong criticism by tax experts and trade for absence of legal cover for requirement of CNIC/NTN of unregistered persons under the law.
Following is the text of SRO 821(I)/2011 issued here on Wednesday: In exercise of the powers conferred by first proviso to sub-section (1) of section 23 of the Sales Tax Act, 1990 read with sub-section (3) of section 18 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to direct that in case of registered manufacturer, 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.