The National Board of Revenue (NBR) is considering launching a new Withholding Identification Number (WIN) system to strengthen monitoring of tax deductions at source. The proposal may be presented in the national budget speech on June 11. Under current law, institutions deduct 5 percent tax from house rent payments and deposit it into the government treasury, but there is no effective mechanism to verify whether the deductions are properly made or deposited. The WIN system aims to ensure transparency and accuracy in withholding tax collection.

According to NBR officials, the new system would help increase revenue and reduce tax evasion by tracking how much tax each institution deducts and from whom. Certificates issued against deducted taxes would assist taxpayers in claiming adjustments or refunds during annual income tax returns, while deducting authorities could prove compliance with government rules. Institutions involved in salary payments, product or service transactions, and financial institutions deducting tax on interest income would be required to register for a WIN.

The NBR is also dropping plans to reintroduce wealth tax and to allow whitening of undisclosed money in the upcoming budget, while 67 top taxpayers will receive awards to encourage compliance.