Finance Act 2026: FBR denied powers to recover taxes from bank accounts without notice

ISLAMABAD: False news has been circulating in social media for the last many days that the Federal Board of Revenue (FBR) has been given special powers through Finance Act 2026 to recover taxes from the taxpayer’s bank accounts in Pakistan without knowledge of the account holder.

Top FBR officials told Business Recorder late Sunday night that the powers to recover taxes from the bank accounts have already been prescribed in the tax laws. This recovery power has been available to the tax officials for the last 50 years. No new powers have been given to the Inland Revenue tax officials under the Finance Act 2026.

When asked why social media is circulating such news, senior government officials responded that no such amendment has been made under the Finance Act 2026.

Finance Act 2026 has not done any amendment in the tax laws relating to the recovery of taxes from the bank accounts of taxpayers, officials maintained.

To a question why social media influencers are making videos against the FBR on Finance Act powers, senior FBR officials said that the recovery of taxes from the account holder is not so simple as propagated in social media. Demand notice is issued under section 137(2) of the Income Tax Ordinance 2001 to the taxpayer. A 30 days period is provided to the taxpayer to respond to the department. The detailed process is covered under section 140 of the Income Tax Ordinance 2001. The whole procedure of recovery from bank accounts is cumbersome and needs high level approvals in the FBR.

Copyright Business Recorder, 2026