No Condition of CNIC for women on purchase of Rs. 50,000
- Shireen Mazari clears up the CNIC condition for women while purchasing goods of over Rs.50,000.
- FBR has made it compulsory for ordinary citizens to show their identity cards on purchase of over Rs 50,000 from a sales tax registered person.
- The provision will be helpful in avoiding fictitious business buyers from conducting transactions.
The Minister for Human Rights, Dr. Shireen Mazari refuted the condition for women to furnish CNIC of their husband/father while purchasing goods of over Rs.50,000.
The Minister’s statement came in response to a tweet condemning the condition of women needing to present their husband or father’s CNIC to conduct transactions above Rs.50,000.
Absolutely wrong – so spoke to FBR Chairman & he said this was a “concession” only for women who don’t want to give their own CNIC card’s copy fearing misuse/abuse. Anyhow women do not need to give copies of husband/father’s CNIC in addition to their own! FBR will also clarify. https://t.co/mexIi15zXm
— Shireen Mazari (@ShireenMazari1) July 24, 2019
The Federal Board of Revenue (FBR) had announced a computerized National Identity Card (CNIC) condition through a sales tax circular that was issued to explain the adjustments made in the Sales Tax Act in the budget 2019-20.
According to the circular issued by Federal Board of Revenue:
“FBR is familiar of cultural constraints and traditions of the country. Therefore, in case of purchase over Rs50,000 by an ordinary consumer being a female, the CNIC of the husband or the father will be considered valid for the purposes of implementation of this provision.”
Recent Provisions Made by FBR:
According to the recent provisions notified by the Federal Board of Revenue, it will be compulsory for ordinary citizens to show their identity cards while making a purchase of over Rs50,000 from a sales tax registered person.
It means any citizen who shops worth over Rs50,000, at a shopping mall, for example, will have to present their CNIC if the business they are purchasing from is registered.
Currently, there are only 41,484 sales tax registered persons in Pakistan who are paying some tax with their returns.
The provision of the Identity Card number doesn’t require the buyer to be a registered person under the sales tax law. Sales to unregistered persons are also permitted.
According to the sales tax law, this condition will not apply if the value of purchases is below Rs.50,000 in case the sale is being made to an ordinary consumer (a person who buys something for personal consumption)
The Main Purpose:
Federal Board of revenue stated that the main purpose of the CNIC number condition is the documentation of business-to-business transactions and a few transactions of a value higher than Rs50,000 by a limited number of consumers.
FBR further stated that provision will help in avoiding fictitious business buyers from conducting transactions that give huge sales tax losses in the value chain.
Ordinary small and medium-sized retailers in Pakistan fall outside the sales tax regime. Hence, sales by such persons will not be affected by this provision in any manner.