ISLAMABAD: The Federal Board of Revenue (FBR) has firmly rejected allegations of breaching taxpayers’ financial privacy after sending SMS alerts to income tax filers regarding their bank accounts and movable and immovable property transactions.
In a detailed briefing submitted to the Senate Standing Committee on Finance, the FBR clarified that the recent text messages were part of a behavioral compliance initiative aimed at improving tax awareness and encouraging voluntary filing.
According to the tax authority, the information shared through these messages relates strictly to each taxpayer’s own financial profile and is communicated only to the concerned individual. No third party is involved at any stage, and all correspondence is carried out through secure official channels.
The FBR emphasized that it is legally empowered under the Income Tax Ordinance, 2001, to collect third-party data from relevant institutions for the purpose of widening the tax base and strengthening compliance mechanisms.
Under Section 165A, banking companies are required to provide prescribed details to the FBR, including information on deposits, withdrawals, and payments exceeding specified thresholds.
Meanwhile, Section 175A authorizes real-time access to databases of designated agencies such as NADRA, FIA, State Bank of Pakistan (SBP), provincial land authorities, and electricity and gas utilities. All such data sharing is governed by Section 216, which ensures strict confidentiality and limits usage exclusively to tax-related purposes.
The FBR further stated that all financial information is stored within its secure systems and utilized only for risk-based analysis and taxpayer facilitation, in full compliance with data protection laws.
Reiterating its commitment to citizens’ financial privacy, the revenue authority assured that the highest standards of data security and confidentiality are being maintained.
“The SMS alerts do not constitute a breach of privacy,” the FBR said, adding that the initiative is an evidence-based approach designed to enhance voluntary compliance by informing taxpayers about their own declared and third-party-reported financial data.
The FBR also reaffirmed its willingness to cooperate with parliamentary oversight bodies and pledged to uphold transparency, data protection, and taxpayers’ rights at every level.
