The Federal Board of Revenue (FBR) has established a social media monitoring cell to crack down on tax evasion. A team of 40 investigators is currently reviewing posts on Instagram, TikTok, and YouTube by influencers, celebrities, realtors, and businesspeople to identify individuals whose lavish lifestyles do not align with their tax filings. A senior FBR official noted that these social media accounts are “open-source” and can quickly lead to tax evasion cases.
Mandate and Objectives of the New Unit
This new monitoring cell was formed to address Pakistan’s chronic inability to meet its revenue collection targets and to help achieve the more ambitious goals set in the current IMF-backed budget. With one of Asia’s lowest tax-to-GDP ratios, Pakistan has a long history of weak revenue collection, and less than 2% of its population pays income tax. According to a document seen by Reuters, the unit’s mission is to “systematically monitor, scour and analyse data from major social media platforms” to identify individuals who display wealth but either aren’t registered for tax or report an income that is inconsistent with their lifestyle and assets. The cell will create digital profiles of suspects, assess the money behind their high-end lifestyles, and prepare reports for tax or money laundering investigations.
Scope of Investigation
Officials stated that the FBR is currently reviewing several high-profile cases. One example is a wedding that allegedly cost nearly Rs248 million ($878,000), with documents showing lavish spending on diamond and gold sets and designer bridal outfits. The team is also examining videos featuring luxury cars, high-end property tours, and influencers who flaunt extravagant lifestyles. An official mentioned that people themselves tag event managers, caterers, and jewelers, making the FBR’s work easier.
Although the unit is new, it has already shortlisted several files for deeper scrutiny. Officials are optimistic that this new focus on social media provides stronger leads and a quicker way to identify undeclared wealth.
