FBR to monitor bank transactions exceeding declared income

The federal government has decided to tighten monitoring of individuals conducting financial transactions beyond their declared income, officials revealed on Tuesday.

Federal Board of Revenue (FBR) Chairman Malik Amjed Zubair Tiwana informed the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar, that banks would assist in identifying discrepancies between declared income and actual transaction volumes.

“We will share taxpayer income and turnover data with banks using national identity card details,” Tiwana said.

“Banks will be required to report transactions that do not match the FBR’s records, but they will not be instructed to block them.”

Under the new mechanism, financial institutions must flag transactions exceeding the declared income in wealth statements or tax returns.

“The focus is on transparency. Any significant deviation will be reported to the tax authorities,” Tiwana added.

During the meeting, Pakistan Muslim League-Nawaz (PML-N) lawmaker Bilal Azhar Kayani explained that non-filers would be permitted to buy a house for the first time, while existing taxpayers could acquire new properties for themselves, their parents, or children.

He clarified that real estate purchases could be made using cash or equivalent assets, but all transactions would be subject to enhanced scrutiny.

Committee Chairman Naveed Qamar questioned why asset definitions had been included in the legislation, to which Tiwana responded that it was necessary to ensure transparency.

The move is part of Pakistan’s broader efforts to enhance tax compliance and combat financial irregularities.

FBR uncovers Rs 977 million tax fraud in export facilitation scheme

Last week, FBR uncovered a tax fraud worth Rs 977 million carried out under the Export Facilitation Scheme (EFS).

According to Director Customs Post Clearance Audit (PCA) South, Shiraz Ahmed, two fraudulent companies misused the EFS to evade taxes on the import of precious metal molds.

The companies allegedly imported 47 containers of high-value metals but manipulated records, declaring only 111 metric tons while 1,560 metric tons of imported goods went missing.

One company was found to have evaded Rs 499 million, while the second dodged Rs 478 million in taxes.

Further investigation revealed that the fraudulent companies were not even listed in FBR’s active registration database, raising concerns about regulatory loopholes.