FBR and banks to share data, set a Rs 100m annual cash withdrawal limit, track large investments, and tax digital ads to curb evasion and boost transparency.
FBR and Banks Agree to Share Data to Tackle Tax Evasion
New Data-Sharing Framework Introduced
Karachi: In a major step toward tackling tax evasion, the Federal Board of Revenue (FBR) and commercial banks have agreed to launch a data-sharing system. This system will help track large transactions and improve tax compliance.
Under this plan, the FBR and financial institutions will exchange financial data to monitor major investments and withdrawals. The goal is to make financial activities more transparent and aligned with declared income.
Monitoring Large Investments and Withdrawals
According to official sources, investments of up to Rs. 50 million in mutual funds, money market instruments, and other securities will be classified as “new investments.” These will be closely tracked by the FBR.
An annual cash withdrawal limit of Rs. 100 million per person has also been set across all bank accounts. Any amount exceeding this limit will trigger a tax review by the authorities.
Digital Tools for Data Comparison
The FBR will use advanced digital analysis tools to compare taxpayers’ declared income with bank data.
If inconsistencies appear, banks must assist in verifying and reporting findings to the FBR.
Officials have stressed that the shared data will be used only for tax-related purposes.
Expanded Tax Authority
Recent updates suggest that Grade 16 officers at the provincial level may soon have the authority to investigate counterfeit goods. These powers could be given to officials from either the Revenue or the Excise and Taxation Departments.
Tax on Digital Advertising
The FBR will now collect taxes on digital advertising revenue, including income from social media platforms.
Entities failing to submit tax returns for online ads or services may face penalties up to Rs. 1 million.
If a foreign digital company continues advertising in Pakistan for more than 120 days without paying taxes, the Income Tax Commissioner may block payments from local clients.
Promoting Financial Transparency
This initiative is part of a nationwide effort to increase transparency and government revenue.
By tracking major investments and cash flows, the FBR aims to create a fair and accountable tax system, discouraging undocumented financial activity.