The Federal Board of Revenue (FBR) has intensified its nationwide crackdown on tax evaders living beyond their declared means.
The FBR’s Lifestyle Monitoring Cell has identified dozens of individuals leading extravagant lives — driving luxury cars, vacationing abroad, and flaunting expensive brands — while declaring little to no taxable income.
According to FBR officials, a large-scale tax audit campaign is now underway to uncover undeclared income and hidden assets.
Lavish lifestyle, negligible income
Sources said that a private company owner in Lahore is currently under investigation. Despite owning 30 luxury cars valued at Rs2.74 billion, the individual’s declared income remains negligible.
FBR officials confirmed that such cases have triggered detailed tax audits aimed at exposing discrepancies between actual wealth and reported income.
Social media influencers under scrutiny
The FBR’s campaign also extends to social media influencers who are under the radar for living lavishly while paying minimal taxes.
Officials said many influencers frequently travel abroad, use high-end luxury brands, and display a wealthy lifestyle on social media, yet their tax returns reflect only modest earnings. These individuals are now being monitored through digital profiling and financial data tracking.
Sources disclosed that many tax filers have failed to declare expensive jewellery, watches, and other luxury assets in their returns. The FBR is verifying whether these assets have been omitted deliberately to evade taxes.
To ensure compliance, the Board has directed all Regional Tax Offices (RTOs) to take immediate enforcement action against suspected tax dodgers. Officials emphasized that the campaign will remain ongoing until full accountability is achieved.
Tax shortfall puts annual target at risk
The aggressive enforcement comes as the FBR faces a Rs274 billion shortfall in revenue collection during the first four months of the fiscal year. The department’s annual tax target of Rs14,131 billion now appears to be in jeopardy.
As of now, 5.9 million tax returns have been filed, but officials believe that many taxpayers are still hiding their true income and underreporting assets, worsening the revenue gap.
New strategy to boost tax collection
FBR insiders say the new lifestyle-based monitoring approach aims to connect declared income with actual spending patterns. By identifying individuals whose visible wealth — luxury cars, overseas trips, and high-end purchases — exceeds their reported earnings, the Board hopes to broaden the tax base and improve compliance.
