The Federal Board of Revenue (FBR) has decided to tighten its grip on individuals who conduct transactions that exceed their declared income. This move comes as part of ongoing efforts to curb tax evasion and increase transparency in the financial sector.
During a meeting of the National Assembly’s Finance Standing Committee, FBR Chairman Rashid Langrial revealed that banks will be required to share data on taxpayers’ income and turnover based on their identification cards. Langrial emphasized that the FBR will collaborate closely with banks to cross-check transaction volumes against official income reports.
He further stated that banks will be instructed to report any discrepancies between an individual’s transaction volume and their declared income in wealth statements or tax returns. While the banks will not be asked to block these transactions, they will be required to promptly report them to the FBR for further investigation.
This initiative is part of the government’s broader strategy to target individuals who are engaging in financial activities inconsistent with their reported income, reinforcing the drive for greater accountability and fairness in the tax system.
