ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) has intensified its efforts to expand the tax base by sending reminder text messages to return filers including Finance Minister Muhammad Aurangzeb encouraging them to disclose undeclared financial transactions in their annual tax returns.
Speaking during a meeting of the Senate Standing Committee on Finance on Wednesday, Aurangzeb revealed that he personally received a compliance SMS from the FBR. He welcomed the initiative, calling it a positive step toward improving voluntary tax compliance.
The session, chaired by PPP Senator Saleem Mandviwalla, reviewed concerns raised by Senator Asad Qasim regarding FBR messages that include details of taxpayers’ banking and transaction records. The senator argued that such communications could infringe on financial privacy.
One Million New Returns Linked to SMS Campaign
FBR Chairman Rashid Mahmood Langrial told the committee that the behavioral “nudge” campaign has delivered measurable results. According to him, nearly one million additional income tax returns were filed following the launch of the SMS initiative in September 2025, while the number of “nil filers” also declined.
By the extended deadline of October 31, FBR received around six million returns — about one million more than the previous year. However, cumulative filings for tax year 2025 currently stand at approximately 7.2 million, showing a 10% decrease compared to eight million returns filed in tax year 2024.
Langrial explained that the messages are generated using data already declared by taxpayers to property registries and vehicle registration authorities. He stressed that the communications are sent only to the concerned individual and not shared with any third party.
FBR Rejects Privacy Breach Claims
Responding to criticism, the FBR clarified that the SMS alerts are part of an evidence-based compliance strategy and do not violate privacy laws. The authority stated that all information is stored within its secure systems and used strictly for risk analysis and taxpayer facilitation.
Under the Income Tax Ordinance, FBR is legally empowered to collect third-party data from financial institutions and registration bodies to strengthen enforcement and widen the tax net. The organization reaffirmed its commitment to maintaining high standards of confidentiality and data protection.
Finance Minister Aurangzeb acknowledged during the meeting that Pakistan’s tax base remains narrow, while the FBR chairman added that resistance from influential circles has slowed enforcement efforts. He proposed holding an in-camera briefing to identify such obstacles.
Super Tax Collection and Banking Charges Also Reviewed
The committee also discussed super tax recovery, with Senator Abdul Qadir recommending that payments be spread over two years to ease the burden on taxpayers following a recent Federal Constitutional Court ruling. Langrial clarified that the total estimated super tax stands at Rs217 billion, correcting earlier reports of Rs300 billion.
Separately, lawmakers strongly criticized commercial banks for charging customers extra fees for SMS alerts and related services. Senator Mandviwalla directed the State Bank of Pakistan (SBP) governor to intervene and present a report at the next committee meeting.
While the SBP governor maintained that banks do not profit from these alerts, senators urged regulators to take firm action to protect consumers.
