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
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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.
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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.