TIN Takes Priority in Tax Policy Tweaks
In a notable shift aimed at easing financial service access and simplifying compliance, Taxpayer Identification Numbers (TIN) will now be required for availing 12 specific services, including credit cards—without the mandatory submission of income tax returns. This was announced by Economic Adviser Dr. Salehuddin Ahmed during the presentation of the proposed budget for the fiscal year 2025–26, held virtually on Monday, June 2.
Under the proposed changes, “only submission of TIN certificates will be required for services like credit cards,” Dr. Ahmed said, clarifying that filing tax returns will no longer be a prerequisite for those services.
The adviser outlined several additional tax policy proposals to promote clarity and convenience for taxpayers:
Dr. Ahmed proposed exempting certain charitable and religious institutions from the obligation to file tax returns. “Funds, orphanages, and religiously motivated organizations will be relieved from return submission requirements,” he said.
He further suggested a shift in the frequency of withholding tax return submissions—from monthly to quarterly—by authorities responsible for tax deductions at source.
Addressing real estate transactions, the proposal mandates that any extra payments beyond the deed value during the transfer of land or buildings must be verifiable through supporting documentation, such as bank statements. This extra amount will then be subject to capital gains tax at applicable rates.
Lastly, to streamline the auditing of self-assessed tax returns and reduce complications at the field level, the budget proposes the replacement of existing audit-related provisions with a more efficient and simplified framework.
These proposals reflect an effort to balance revenue collection with taxpayer facilitation and are part of broader fiscal reforms outlined in the interim government’s contractionary budget plan.
