To facilitate the business community in depositing tax without hassle, the Central Board of Revenue (CBR) has asked the State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) to accept tax payments without National Tax Number (NTN) or Computerised National Identity Card Number (CNIC).
The CBR on Saturday issued these instructions to SBP/NBP, Karachi to immediately circulate the directive to their respective branches all over the country.
According to the CBR''s instructions, "No tax payment should be refused for want of NTN, CNIC and Sales Tax Registration Number (STRN)".
Official sources told Business Recorder that CBR has restored the old system of accepting tax payments without NTN or CNIC at the bank branches. However, the new automated system will also operate to improve its performance. The traditional manual system would continue to operate till the new system is fully implemented and accepted by the taxpayers in due course of time. Similarly, the CBR will continue to test the system for error-free implementation.
The CBR has made all necessary arrangements to switch over from the traditional and manual tax collection system to automated collection system in collaboration with the SBP/NBP. Under the computerised system, National Tax Number (NTN) of the taxpayer is mandatory for payment of all CBR taxes ie Income Tax, Sales Tax, Federal Excise and Customs Duty from July 1, 2005.
However, individual taxpayers without National Tax Number are permitted to make tax payment by quoting their Computerised National Identify Card (CNIC).
However, the CBR has now decided that the banks may accept tax payments without NTN or CNIC to facilitate the taxpayers till they fully understand the new system. There are apprehensions that (operating in )the old system, (banks) may start accepting ''Be-nami'' income tax challan (challan without name).
One of the main reasons for introducing the new system was to ensure that banks should not accept any ''Ba-nami'' income tax challan. It is the responsibility of the taxpayer to ensure that his name is written on the "challan". Under the computerised system, the banks had started generation of computerised income tax challans along with the stamp of the bank on each challan.
These challans would be acceptable to the department. But, now the CBR has allowed acceptance of challans not bearing NTN or CNIC, as per new directive to the banks, officials said.
It is yet to be seen for how long these new instructions to NBP and SBP would remain valid. Secondly, the acceptance of tax payments without NTN or CNIC would also not affect the existing pace of revenue collection in 2005-06, officials added.