Delays in issuing Pakistan's residents with National Tax Numbers (NTNs) is preventing international traders from accessing letters of credit (L/Cs) and other trade services.

Citizens should be able to obtain NTNs in a matter of 48 hours, but sometimes it is taking weeks or even months for the apparently beleaguered authorities to issue a much-needed tax number.

Traders' difficulties

According to tax experts, importers and exporters without NTNs will face difficulties obtaining customs clearance at ports.

They also say traders will not be able to open L/Cs with banks nor pay demurrage at ports.

Confusion

Despite the introduction of online services aimed at making it easier to obtain NTNs, Pakistan's system of issuing the tax numbers appears to have broken down.

Moreover, taxpayers who apply for numbers and do not receive them are reportedly finding it difficult to find out from the tax authorities why they have not received their tax numbers.

Other impacts of the breakdown in the NTN issuing systems include potential loss of revenue to the exchequer because citizens without a tax number cannot pay tax.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.