The Federal Board of Revenue (FBR) has made it mandatory for citizens to show their Computerised National Identity Cards (CNIC) for purchases over Rs50,000.
According to reports, the said purchases shall be made from a registered sales tax vendor, while in case of a female buyer, the CNIC of her husband or father would also be acceptable.
The development comes as the ruling Pakistan Tehreek-e-Insaf (PTI) tightens the noose around undocumented individuals making purchases without paying taxes.
According to Dawn, all such measures are primarily aimed at bringing small, medium and even some large retailers into the sales tax net. FBR further states that transactions under ‘good faith’ will not be penalised.
“No action will be undertaken without the approval of the chief commissioner of the jurisdiction.”
Furthermore, where the incidence exceeds Rs5 million, the action will require further approval of member operation or director general (export-oriented sector). No action will be taken unless it has been undertaken against the person who has used a fake CNIC, reports said.
This condition will help avoid unverifiable and fictitious business buyers which results in huge sales tax losses.
