The government is set to make Tax Identification Number (TIN) mandatory for registering motorcycles of 150 cc and above in the 2026-27 budget, as part of efforts to widen the tax base by linking asset ownership with tax registration.
The requirement will apply only at the registration stage. TIN will not be required for renewal services, and the government has also dropped an earlier plan to impose advance income tax on motorcycle and battery-rickshaw owners.
Officials said the move is aimed at identifying potential taxpayers rather than introducing a new tax on vehicle ownership. Anyone registering higher-capacity motorcycles will need to submit a valid TIN certificate.
The policy targets growing motorcycle ownership among service holders, small entrepreneurs and gig economy workers, where authorities believe income levels often remain outside the tax net despite asset ownership.
It is part of a wider push by the National Board of Revenue (NBR) to expand the tax base without raising headline tax rates, by using registration systems and digital data to capture informal income.
Under related reforms, TIN will be required for opening bank accounts other than the student accounts and the no-frills accounts, while tax authorities will integrate National Identity (NID), banking, utility and land records to identify undeclared income through cross-checking.
A new Withholders Identification Number (WIN) system is also being introduced to track entities deducting tax at source and reduce leakage in withholding tax collection.
Officials said the overall strategy marks a shift from rate-based taxation to coverage-based enforcement, focusing on bringing more individuals into the tax system rather than increasing tax rates.
Alongside enforcement measures, the budget includes incentives for freelancers, SMEs, startups and content creators to encourage voluntary registration and formalisation of informal income sources.
The government said the combined approach aims to expand the tax net while improving compliance through simpler rules and stronger data integration.
