It has been notified by the Federal Board of Revenue to make it mandatory for citizens to show there Computer National Identity Card if they make a purchase of over Rs.50,000 from a registered sales tax seller.
If it’s a female buyer, the CNIC of the husband or father will be considered valid.
If the value of purchases is below Rs.50,000 then the condition will not apply.
The aim of applying the CNIC condition is to document business-to-business transactions for purchases that have a value higher than Rs50,000.
A sales tax circular was issued by FBR to reveal the changes made in the Sales Tax Act. The amendment makes it mandatory for purchasers to show their CNIC on purchases made from a sales tax registered person.
The amendment states that if a purchase is made from a sales tax registered person then the CNIC number of the buyer must be given in a limited situation. CNIC number provision does not necessarily mean that the buyer must be a registered person under the sales tax law. Sales can also be made to the unregistered person.
If the sale is made in good faith, but the CNIC provided by the purchaser was incorrect, the penalty will not be given to the seller or the purchaser.
Earlier FBR under Finance Bill 2019-2020 proposed to have Computerised National Identity Cards (CNIC) details in shopping bills.