Bank Withdrawal Limit Set at 100 Million PKR Annually, Data Sharing Agreement Between Banks and FBR to Combat Tax Evasion

Karachi: Banks and the Federal Board of Revenue (FBR) have decided to exchange data to curb tax evasion. According to sources, the new regulations state that investments up to 50 million PKR in securities, debt securities, mutual funds, and the money market will be considered as new investments. Additionally, the annual limit for cash withdrawals from banks has been set at 100 million PKR.
Sources indicate that in order to combat tax evasion, there will be a data exchange between banks and the FBR. The FBR will be able to share information gathered from tax returns with scheduled banks. With modern digital tools, the FBR will cross-check the data provided by the banks. In cases where discrepancies arise, the banks will be required to present the final results to the FBR. The information shared by banks will only be used for tax-related matters.
The sources also revealed that the FBR might assign powers to a Grade 16 officer from any provincial department for monitoring counterfeit goods. These powers could also be delegated to any officer from the Revenue or Excise & Taxation department.
Furthermore, the FBR will act as an agent for collecting taxes on income derived from social media advertisements. Failure to submit tax returns related to digital services, goods, or advertisements will lead to penalties, with a fine of up to 1 million PKR (10 lakh) for non-compliance.
The sources also mentioned that if a foreign company fails to pay digital taxes after running ads for 120 days, payments will be blocked from local platforms. The authority to stop these payments will rest with the Commissioner of Income Tax.