Law Minister Azam Nazeer Tarar has strongly defended the Federal Board of Revenue’s (FBR) legal authority to access and share bank information of taxpayers, stating that these actions are fully backed by law and align with global anti–money laundering standards. The minister’s remarks came in response to a calling-attention notice from Senator Asad Qasim concerning FBR text messages that revealed filers’ bank balances and transactions.
Tarar emphasized that financial scrutiny is an essential part of modern tax administration. “You cannot say FBR should not ask questions,” he stated, noting that banks are legally obligated to provide such data and that tax evasion is treated as a predicate offense under international anti-money laundering (AML) regulations. He further added that transparency between taxpayers and regulators is critical to ensure compliance. “If someone has five crore rupees in their account but hasn’t declared it, and FBR issues a reminder, there should be no objection,” he said.
Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry confirmed that FBR had sent notifications to both filers and non-filers in cases where discrepancies were observed between declared income and actual bank transactions. He cited Section 165A of the Income Tax Ordinance, which authorizes banks to share deposit information with the FBR, alongside other provisions allowing access to data from FIA, the State Bank, NADRA, and utility companies.
Rejecting concerns over privacy violations, Law Minister Tarar clarified that taxpayer information is only sent to the respective individual and not broadcasted publicly. He stressed that the law is clear in providing FBR with the necessary authority to monitor undeclared income while maintaining confidentiality.
Despite the government’s position that the legal framework is unambiguous, the Senate has referred the matter to the relevant standing committee for further review, acknowledging the sensitivities surrounding data protection and taxpayer privacy. The committee is expected to examine safeguards and ensure that FBR’s access to bank data balances effective tax enforcement with the protection of citizens’ rights.
This defense of FBR’s authority highlights Pakistan’s ongoing efforts to strengthen compliance, reduce tax evasion, and align domestic practices with international financial transparency and anti-money laundering standards. The government maintains that such measures are crucial for a fair and effective tax system, while also ensuring that individual privacy is protected within the legal framework.
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