The Federal Board of Revenue (FBR) has clarified that no violation of financial privacy was involved in the text messages sent to income tax filers regarding their bank accounts and movable and immovable assets.
According to sources, in a written briefing submitted to the Senate Standing Committee on Finance, the FBR stated that the purpose of sending these recent text messages was to create awareness and promote voluntary tax compliance among taxpayers.
The FBR said that the information used in these messages relates only to the individual taxpayer’s own financial profile and is shared exclusively with the concerned person. No third party is involved in the transmission of these messages, and all communication is carried out through secure official channels.
According to the briefing, the FBR further explained that under the Income Tax Ordinance 2001, it has the legal authority to obtain third party data from various institutions to expand the tax base and improve compliance. In this regard, under Section 165A, all banking companies are required to provide the Board with information on deposits, withdrawals, and payments exceeding prescribed thresholds.
Similarly, under Section 175A, direct access is provided to the databases of designated institutions, including NADRA, the FIA, the State Bank, provincial land authorities, and electricity and gas utilities. This data is used strictly for tax purposes in line with confidentiality requirements under Section 216.
The FBR stated that all data is stored within its secure systems and is used only in accordance with the law and data protection principles for risk based analysis and to facilitate taxpayers.
The authority reaffirmed its commitment to fully respecting citizens’ right to financial privacy and ensuring the highest standards of data security and confidentiality. According to the FBR, these messages do not constitute a breach of financial privacy but are part of efforts to strengthen voluntary compliance and keep taxpayers informed about their own financial information.
