New shopping rule for Pakistanis

Islamabad - The rule will help avoid unverifiable and fictitious business buyers which results in sales tax losses.

The Federal Board of Revenue (FBR) has notified provisions making it mandatory for ordinary citizens to show Computerised National Identity Card (CNIC) in case of purchase of more than Rs50,000 from a registered sales tax seller.
This condition will not apply if the value of purchases is below Rs50,000 in case sale is being made to an 'Ordinary Consumer'.  The term 'Ordinary Consumer' means purchases for own non-business use by the end consumer
In the case of a female buyer, the CNIC of her husband or father will be considered valid for the purchase, the Dawn reported.
The FBR said in a circular that the main purpose of the CNIC condition is for documentation of the business-to-business transactions. Transactions above Rs50,000  value, that too from sales tax registered person, are made by a limited number of consumers. This condition will help avoid unverifiable and fictitious business buyers which results in huge sales tax losses, the statement added.
The clarification came from FBR through a sales tax circular issued here on Monday to explain the amendments made in the Sales Tax Act, which made it mandatory for buyers to show CNIC on purchases made from a sales tax registered person. There are 41,484 such sales tax registered persons who are actually paying some tax with returns.
As per the amendment, if a purchase is made from a sales tax registered person, the CNIC number of the buyer is to be provided in limited situations.
Provision of CNIC number does not mean that buyer has to be a registered person under the sales tax law. Sales to unregistered person can be made.
It was also clarified that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of loss or penalty will not arise against the seller in case the sale is made in good faith.
In Pakistan, under the present regime and also under the proposed one for retailers, ordinary small and medium-sized retailers fall outside the sales tax regime. Therefore, sales by such persons will not be affected by this provision in any manner.

• Pakistan