Banks to share transaction details with FBR.

Karachi: Commercial banks across the country will now be required to share the details of financial transactions (recorded during the first half of FY 2019-20) with the Federal Board of Revenue (FBR) by the end of the current month (January) – under an agreement signed between the taxation agency and the Pakistan Bankers Association (PBA) on November 27, 2019, according to news sources.2w

FBR to intensify operation against tax evaders

The two institutions had announced their decision to check suspected undocumented money trails circulating through banking channels. Under this agreement, the tax authorities will have access to real-time transactions made through the banks. Moreover, details of accountholders (national identity card number, name, and addresses) and their cash withdrawals, deposits and credit/ debit card transaction information will also be provided to the FBR.

According to the officials at Karachi’s Large Taxpayers Unit (LTU), FBR will be able to detect a large number of potential taxpayers, while sifting through this data. They added that banking transactions’ volume has increased multi-fold during the last few years.

 FBR Chairman sends another letter to banks for account details

The State Bank of Pakistan (SBP)’s payment system review shows that transactions made during FY 2018-2019 accumulated to PKR 603 trillion, as compared with PKR 559 trillion transaction sum of the preceding year, overall showing a spike of 8%.

Previously, the FBR has launched provisions regarding information of payments made electronically; considering the increase in credit/ debit card transactions.