The Federal Board of Revenue has decided to approach cement manufacturers, food/beverages companies, cigarette manufacturers, automobile assemblers/manufactures and mobile phone companies for registration of distributors, wholesalers and retailers. Sources told Business Recorder here on Friday thousands of distributors, wholesalers and retailers would be brought into the documented regime on the basis of information being collected from the manufactures.
Within the category of manufacturers, the FBR has prioritised list of manufacturers depending on the number of distributors, wholesalers and retailers operating in the supply chain. In the first phase, the FBR has selected cement manufacturers, food/beverages companies, cigarettes manufactures, automobile assemblers/manufactures, mobile phone companies for prepaid cards, payphone companies for pre-paid cards used in booths. The FBR will obtain the information about un-registered distributors, wholesalers and retailers from these manufacturers.
Once the FBR would be able to document distributors, wholesalers and retailers of cigarette manufactures, automobile assemblers/manufactures, mobile phone companies and cement manufactures, the tax department would focus on other categories of manufacturers and companies, sources added.
When contacted, a tax expert was of the view that the data of the Computerised National Identity Cards (CNICs) numbers and National Tax Number (NTNs) could also help in registration of wholesalers, distributors and dealers. Over 90 percent of the supplies are being made by the manufacturers to the unregistered wholesalers, distributors and dealers of all essential commodities and items. These businessmen have to be registered with the sales tax department as they are directly obtaining supplies from the manufacturers, who are avoiding sharing of basic information with the tax department. The documentation measure of the FBR to obtain the CNICs/NTNs from the unregistered buyers/sellers would bring these potential wholesalers, distributors and dealers within the documented regime as per current provisions of the law.
The unregistered wholesalers, distributors and dealers etc have to obtain sales tax registration as they are purchasing huge quantity of goods directly from the manufacturers. All such potential wholesalers, distributors and dealers would be documented by obtaining their CNICs or NTNs from the concerned manufacturers within the supply chain, they added.