In a significant move aimed at strengthening tax compliance and curbing evasion, the Federal Board of Revenue (FBR) and commercial banks have agreed to share financial data under a structured framework.
The decision is expected to help bridge the gap between declared income and actual financial activity, using modern digital tools for cross-verification.
According to official sources, investments of up to Rs 50 million (5 crore) in various financial instruments—such as securities, debt instruments, mutual funds, and money market assets—will now be categorized as new investments and closely monitored. Additionally, an annual limit of Rs 100 million has been set for cash withdrawals from bank accounts, which will also be scrutinized.
Under the proposed system, banks will exchange customer financial data with the FBR, while the tax authority will also share information from income tax returns with scheduled banks. This two-way data sharing is designed to enhance transparency and ensure that individuals and businesses are not underreporting their financial activities.
Sources indicate that the FBR will employ advanced digital technologies to analyze and compare banking data against tax filings. In cases where discrepancies arise between the records of a bank and those maintained by the FBR, the banks will be obligated to provide clarifications and final data to the FBR.
However, the information acquired through this mechanism will be strictly used for taxation and relevant regulatory purposes.
Furthermore, the FBR is preparing to delegate monitoring authority to provincial officers of Grade 16 and above, particularly in relation to counterfeit goods.
These powers may be assigned to officers from the Revenue Department or Excise and Taxation Departments, as part of a broader enforcement strategy.
In the digital domain, the FBR plans to take on the role of a tax collection agent for income generated through social media advertisements.
A penalty of Rs 1 million will be imposed on entities that fail to file tax returns linked to digital goods, services, or advertising revenues. Repeated violations, including non-compliance with digital tax regulations, will attract similar fines.
In a move targeting foreign advertisers operating in Pakistan, authorities have clarified that if a foreign digital company runs ads for over 120 days without paying applicable digital taxes, local platforms will be barred from disbursing payments to them. Moreover, the Commissioner of Income Tax will be empowered to block such transactions to enforce compliance.
