Strict Penalties Proposed for NTN and CNIC Misuse in Budget

In a bid to curb tax evasion, the federal government has proposed strict penalties for those misusing National Tax Numbers (NTNs) and Computerized National Identity Card (CNIC) numbers in the Budget 2025-26. The move targets individuals who intentionally use false NTNs or CNICs to manipulate tax records.

According to the Budget 2025-26 proposals, any individual found guilty of knowingly using a fake NTN or CNIC number on tax returns or any official document under the tax ordinance will face serious consequences. The proposed penalties include a fine of up to Rs500,000 and imprisonment for a term of up to three years.

This crackdown on NTN and CNIC misuse aims to strengthen tax enforcement and reduce fraudulent activities that result in revenue losses. Authorities will investigate such cases under Section 230(2)(a) of the Income Tax Ordinance, and violators will be prosecuted accordingly.

Officials believe this budgetary measure will deter individuals from attempting to manipulate their identity in financial documents and support the government’s broader agenda to improve transparency and tax compliance. The emphasis on penalizing NTN and CNIC misuse also aligns with Pakistan’s commitments under international financial regulations and efforts to increase domestic revenue collection.

These stricter regulations reflect the government’s push to ensure accountability within the tax system, as it works toward meeting ambitious fiscal targets outlined in Budget 2025-26.