ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory to report financial transactions worth more than Rs100 million to its central data hub under the Finance Act.
Under the new rules, banks and Electronic Money Institutions (EMIs) will be required to provide financial information about relevant account holders to the FBR’s central data hub.
The measure aims to improve monitoring of large financial transactions and strengthen the country’s tax system.
According to the Finance Act 2026-27, information about major financial transactions will be shared with the FBR. The tax authority will then be able to automatically compare banking information with tax records.
If a mismatch is found between a taxpayer’s reported income and their financial transactions, the relevant authorities may take action according to the law.
The new requirement is intended to help the FBR identify undeclared income, improve tax compliance and reduce tax evasion.
Banks and EMIs will play an important role in the system by providing the required financial information to the FBR’s central data hub.
The government expects the measure to increase transparency in large financial transactions and help expand the tax base.
Under the new reporting framework, taxpayers involved in transactions above the specified limit may face greater scrutiny if their financial activity does not match the information declared in their tax records.
The measure forms part of the government’s wider efforts to strengthen tax administration through digital monitoring and data sharing.
The authorities have emphasized that the system will allow tax information and banking data to be compared more efficiently, helping identify discrepancies and take action where necessary.
The new requirement is expected to increase the FBR’s access to financial information and strengthen monitoring of high-value transactions across the country.
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