Govt Likely to End Condition of CNIC on Sales in FY23 Budget

Miftah Ismail, Federal Minister for Finance and Revenue, has informed the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) that the issue of the provision of computerized national identity card numbers (CNICs) to unregistered customers will be rectified in the upcoming budget (2022-23).

The news came during a meeting at the Finance Ministry between Federal Minister for Finance and Revenue Miftah Ismail and a delegation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) led by President Irfan Iqbal Shaikh.

The FPCCI advised the meeting that the CNIC of unregistered consumers must be provided in circumstances where business people are selling to unregistered persons. The input tax is prohibited in the absence of CNIC provision. The FBR should not cause problems for the business community by requesting CNICs from unregistered buyers, as a penalty of 3 percent extra sales tax has already been paid in addition to the 17 percent sales tax, according to the FPCCI.

Read Also: IMF Officials to Arrive in Pakistan on Tuesday for Crucial Talks

The condition of CNIC was included in Finance Act 2019 to extend the tax base since anyone involved in furthering taxable activity must be recorded through such measures. To reduce compliance costs, the threshold was increased from Rs. 50,000 to Rs. 100,000.

The FBR has already broadened the scope of input tax disallowance due to the seller’s failure to include the buyer’s Computerised National Identity Card Number (CNIC) on the invoice, as required by Section 23 of the Sales Tax Act, 1990.

The requirement of a CNIC from unregistered buyers was made effective on February 1, 2020, but the FBR’s field formations were not effectively enforced in the past.

The minister stated that macroeconomic stability is the current government’s top priority during the discussion. It is committed to guaranteeing financial discipline through effective and long-term policies to increase the country’s overall level of growth.

The FPCCI President welcomed the minister to his new post as Finance Minister and provided many ideas for consideration in the Federal Budget 2022-23. FPCCI members proposed ways to increase efficiency in the industrial and agricultural sectors. They also informed the business community in the country about several taxation difficulties. They also asked the minister to consider their recommendations and solve their raised challenges.

The minister acknowledged FPCCI’s effective function as a bridge between the government and traders. He praised the budgeting recommendations made by FPCCI members for various areas of the economy. He stated that the current government aims for inclusive and sustainable economic growth by providing a pro-people and business-friendly budget. All stakeholders’ views will be taken into account.

Leave a Reply

Your email address will not be published.

Back to top button