Senate Directs FBR to Develop Tax Data Sharing Framework

A Senate sub-committee has instructed the Federal Board of Revenue (FBR) to formulate a lawful mechanism for providing Parliament with consolidated tax information while ensuring compliance with taxpayer confidentiality provisions under existing tax laws.

The direction was issued after FBR officials informed the Sub-Committee of the Senate Standing Committee on Interior and Narcotics Control that Section 216 of the Income Tax Ordinance, 2001 prohibits the disclosure of individual taxpayers’ information. The officials clarified that only aggregated, sector-wise tax data can legally be shared without breaching confidentiality requirements.

In compliance with the committee’s earlier directives, the FBR presented industry-wise information relating to consumption certificates and tax revenue collections.

The committee further instructed the tax authority to submit consolidated data covering ghee and steel manufacturing units, along with consumption figures for industries operating in the erstwhile FATA and PATA regions. It also requested the Ministry of Law and Justice to present its legal opinion on the permissible scope of information disclosure during the committee’s next meeting.

During the proceedings, Senator Talha Mahmood questioned why tea imports valued at approximately Rs62 billion were not reflected in the available consumption certificate records.

Senator Dilawar Khan also sought details of internal audits conducted on consumption certificates and asked whether disciplinary proceedings had ever been initiated against officials responsible for issuing inaccurate or improper certificates.

Responding to the committee, FBR officials stated that complete tax return and tax payment data for the financial year ending June 30, 2026, would be compiled and available by July 18, 2026.

The officials further assured lawmakers that the next committee meeting would include comprehensive information on actual tobacco production, documented and undocumented manufacturing activities, as well as production taking place outside the formal tax system.

Concluding the meeting, the committee directed the FBR to finalise complete tax return records and continue investigations into alleged tax evasion involving the tobacco, cigarette, and other sectors until all cases reach their logical conclusion.