Karachi, June 14, 2025 – In a move aimed at curbing sales tax fraud, the Federal Board of Revenue (FBR) has been granted extensive powers to access the personal data of internet users.
The newly proposed amendments in the Finance Bill, 2025 empower the FBR to gather information from Internet Service Providers (ISPs), telecom operators, and the Pakistan Telecommunication Authority (PTA) to assist in investigations of tax evasion and fraud.
Previously, only Assistant Commissioners of Inland Revenue (ACIR) were authorized to seek information from taxpayers or related entities in connection with audits, inquiries, or investigations. They could obtain records from any person, department, or company deemed relevant to a case. However, with the passing of the Finance Bill, 2025, this authority has now been expanded significantly.
Under the new provisions, FBR Commissioners can now require details of internet usage, including Internet Protocol (IP) addresses and subscriber data, from telecom providers and ISPs. This includes any digital trace that could help establish the identity or digital footprint of individuals suspected of being involved in sales tax fraud.
Crucially, the proposed legislation overrides all other prevailing laws. This means that FBR will have the legal authority to access this information even if existing privacy or data protection regulations say otherwise. The move, while applauded by some as a major step toward digital transparency and stronger enforcement, has also raised concerns about data privacy and the potential for misuse.
Analysts suggest that this marks a bold shift in how the tax authority operates, as digital platforms are increasingly being used for undocumented transactions. By enabling FBR to tap into internet-based data, the government aims to enhance its ability to detect fraudulent practices and ensure tax compliance in the evolving digital economy.
Critics, however, warn that this expansion of power must come with stringent checks and accountability. The ability of FBR to access internet user data, if not properly regulated, could raise serious privacy and ethical concerns.
Nonetheless, the government remains firm in its stance that this amendment is essential to strengthening the tax system, deterring internet-enabled fraud, and increasing state revenue.