The deadline for eTIN registration has been extended by three months to June 30 as the previous deadline expired yesterday.
National Board of Revenue (NBR) made the official announcement yesterday.
Officials said they have been compelled to extend the deadline by another spell for registering taxpayers with electronic Taxpayers Identification Number (eTIN) due to loopholes in the Income Tax Ordinance 1984.
The law lacks a provision to penalise taxpayers if they do not register with the eTIN, prompting NBR to extend the deadline, they said.
NBR pointed out the absence of the penalty clause while working on it as the deadline was approaching to its expiry, said an official.
While introducing the eTIN in July last year, NBR did not consider including a provision in the income tax ordinance about the punishment.
“Due to the reason, we are facing difficulties to decide on how to penalise or take action against the errant taxpayers who will be failed to re-register themselves with eTIN,” said a senior official, explaining the reason behind the extension.
If the NBR did not extend the deadline, it would not be possible to penalise people for not re-registering with eTIN.
“Now, NBR is planning to amend its income tax ordinance where it would add a provision on how to take actions against taxpayers, including options for penalty if they do not re-registrar with eTIN or do not take eTIN having taxable incomes,” said the official. The NBR would propose the provision in the upcoming budget 2014-15.
Earlier, the NBR has extended the deadline from December 31, 2013 to March 31, 2014 as desired number of taxpayers did not turn up to be netted under the eTIN.
However, NBR senior information officer Syed A Momen said: “Following requests from the professionals and business associations, and considering the overall scenario, the NBR has extended the deadline till June 30, 2014.”
He said if taxpayers fail to re-registrar themselves with the eTIN within the new deadline, the NBR will impose penalty and take actions on them following the Income Tax Ordinance 1984.
According to NBR, There are 17.52 lakh valid individual TIN holders and 50,000 companies in the country. Of them, over 11 lakh could be brought under the eTIN so far, according to NBR data compiled last week.
From the registered taxpayers, only 8.79 lakh individual taxpayers and 20,000 companies registered under the eTIN and some 2.50 lakh individuals and 5,000 companies received eTIN certificates for the first time, the data reads.
