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KARACHI A large number of taxpayers would not be able to file their tax returns for 2010 owing to non-receipt of their National Tax Number (NTN) and would be missing the last date which is Sept 30.
Tax consultants fear that the national exchequer would be losing billions of rupees in tax collection along with returns if the Federal Board of Revenue (FBR) did not take immediate corrective measures to facilitate taxpayers in getting their NTNs.
Delays in the issuance of NTNs and lack of coordination between the FBR, Islamabad and field offices, like Regional Tax Offices and Large Taxpayers Units, are depriving taxpayers from getting the tax number within 48 hours as being officially assured on the application of the tax number.
Though the FBR has provided a facility to apply for getting NTN electronically or manually, but both the procedures do not help taxpayers in getting the number within the prescribed period of 48 hours, taxpayers complained.
The situation is so much deplorable that even for minor alteration or change in the existing NTN certificates, taxpayers have to undergo immense hardships and difficulties.
Taxpayers approaching their tax consultants complained that it takes two to three months to get any change or alternation in their existing NTN certificates and the entire system seems to lack coordination between FBR Islamabad and field offices.
For a simple verification of NTN application, the FBR and its field offices make taxpayer to run from pillar to post and there are chaotic conditions at all levels, they added.
When an application is filed electronically for an NTN certificate, the system allots a number. The FBR after 20 to 25 days calls the applicant for verification instead of 48 hours as mentioned in the application form of the NTN.
In case the applicant fails to pick-up first verification call, the next call is received after 10 to 15 days.
However, even after getting verification from the FBR, the NTN is not given within 24 hours as officially assured on the form of the application.
Instead it takes another 10 to 15 days. But in many cases, the field offices RTO and LTU deny taxpayers any information about NTN.
Taxpayers say they stay clueless throughout the process and in case of any minor objection and changes, they are not given proper guidance or document so that they could personally attempt to trace their NTN application.
The pathetic conditions of the FBR and its field offices are creating hardship for taxpayers in getting their NTN certificates, and it also deprives the national exchequer from billions of rupees in revenue along with tax returns.
Under the laid down conditions by the FBR no taxpayer could get sales tax registration without NTN registration. This means that no business establishment could start functioning till it gets NTN and thereafter sales tax registration.
Furthermore, tax consultants said without NTN, importers and exporters will also face hardship at customs stage.
Above all, exporters would not be able to open Letters of Credit (L/Cs) with banks and also could not pay demurrage at port.
Those taxpayers whose income is above Rs500,000 or more, including Association of Persons (AoPs) are liable to file their returns of income through e-filing. However, in case of non-availability of NTN, they would not be able to register with the web portal of FBR.
As a result, taxpayers with high bracket income would not be able to file their tax returns within stipulated time, tax consultants asserted.
The banks are also refusing to collection tax money if a taxpayer is not having NTN certificate, they added.
