On Monday, the FBR issued a sales tax notification mandating the buyers to show their Computer National Identity Card (CNIC) on purchases over PKR 50,000 from a sales tax registered person.
According to the new law, for the females making a purchase over PKR 50,000, displaying the CNIC of their Husband or Father would suffice.
“At present there are only 41,484 sales tax registered persons who are paying some tax with their returns,” stated the notification, “This will help bring all people in the tax system.”
“FBR is fully conversant of cultural constraints and traditions of the country,” the notification states, “Therefore, in case of purchase of Rs. 50,000 by an ordinary consumer being a female, the CNIC of the husband or the father will be considered valid for the purposes.”
The officials explained that this rule applies only in the case of women who either do not possess a valid CNIC, do not have an independent income source or do not want to share their CNIC details.
The law offers provisions to safeguard the businesses by providing “if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of loss or penalty shall not arise against the seller in case of sale made in good faith.”
Thereby making it clear that no action would be taken against the sellers in case any error is identified, given that the transaction has been made in good faith.