ISLAMABAD: FBR Chairman Rashid Mahmood Langrial told the National Assembly Standing Committee on Finance that the Federal Board of Revenue plans to use commercial banks to identify undocumented large-scale business transactions.
He shared these details while discussing the proposed Section 175AA of the Finance Bill 2025–26.
The section, titled “Exchange of banking and tax information related to high-risk persons,” would require commercial banks to share transaction data with the FBR based on a turnover threshold that will be prescribed. The FBR will only provide computerised national identity card numbers of account holders to banks and will not share any income tax return details.
Red flags will be raised in cases of unreported high-value transactions, and CNIC batches will be shared with banks to seek relevant information.
The FBR chairman requested that the section include a provision for support from the State Bank of Pakistan. He also proposed the creation of a central banking repository to report transactions to the FBR, to prevent individuals from splitting transactions or opening multiple accounts to avoid detection.
Committee members questioned a sub-clause of Section 175AA, which allows the FBR to share information on turnover, income, and bank account numbers declared in tax filings, along with data-based algorithms, with scheduled banks. In response, Langrial said the FBR is open to revising or removing the clause so that only CNICs are shared.
The proposal is part of broader efforts by the government to improve tax compliance and document informal economic activity.
