ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory to report financial transactions exceeding Rs100 million to its central data hub under the Finance Act 2026.
Under the new provisions, banks and Electronic Money Institutions (EMIs) must share financial information of account holders involved in transactions above the prescribed threshold with the FBR’s central data hub. The move aims to strengthen tax monitoring and improve the government’s ability to identify undeclared income and suspicious discrepancies.
The law will also enable the FBR to automatically cross-check banking and tax records. If the information reported by financial institutions does not match an individual’s declared income or tax records, the authorities may initiate further scrutiny and take action under the relevant tax laws.
The new reporting mechanism is part of the government’s broader efforts to improve tax compliance, expand the documented economy and strengthen oversight of high-value financial activity.
Banks and EMIs will therefore have to maintain accurate transaction and account information and ensure timely reporting to the FBR in accordance with the requirements introduced through the Finance Act 2026.
The measure is expected to give tax authorities greater access to financial data and help them detect potential cases of tax evasion and under-reporting.
