KCCI in its budget proposal FY22 has said that the outdated economic policies, a stifling taxation regime and antiquated and obstructionist administrative structure of FBR and its subordinate departments will only be counterproductive for the economy if some drastic measures are not taken in the budget to rectify the flaws and discard the outdated revenue models. The chamber noted that by amendment to Section 8 (Sub-Sec.1, Clause M) of Sales Tax Act, and addition of 10th Schedule, it is mandatory to provide CNIC number of unregistered person in the invoice. Similar statute has been added U/S.19A of Federal Excise Act, Sec.216A to ITO and Sec.156A of Customs Act. Moreover 3% further tax is also charged on sales to unregistered buyers even if the CNIC number is provided, which is totally unjust and tantamount to penalizing the registered people. Rather than generating more revenue, this provision has resulted in proliferation of undocumented cash transactions. Providing CNIC number should be optional and may be treated at par with STRN if provided in the Sales Tax Return.
31/3/2021