FBR launches social media monitoring unit to track tax evasion

The Federal Board of Revenue (FBR) has established a dedicated “Lifestyle Monitoring Cell” to detect tax evasion by examining social media activity of individuals showcasing wealth.

According to officials, a team of 40 investigators has begun scanning platforms such as Instagram, TikTok, and YouTube to identify cases where declared income appears inconsistent with displays of luxury spending.

The initiative, launched this month, is part of the government’s efforts to strengthen revenue collection under the International Monetary Fund-backed budget.

An internal document reviewed by Reuters states that the cell will “systematically monitor, scour and analyse data from major social media platforms” to identify individuals not registered for tax or under-reporting their income. The unit will compile digital profiles, maintain a central database with screenshots and timestamps, and prepare reports for potential tax or money laundering inquiries.

Officials said one case under review involves a six-day wedding in Karachi estimated to have cost nearly Rs248 million ($878,000). The event featured diamond jewellery, designer bridal outfits, drone light shows, and performances by musicians. Expenditure details from the event reportedly did not align with income declarations of the families involved.

Beyond weddings, investigators are also analysing online content showing luxury vehicles, high-end property tours, and influencers promoting expensive lifestyles. Authorities noted that individuals often tag event organisers, designers, and service providers, making it easier to track spending patterns.

Pakistan’s tax-to-GDP ratio remains among the lowest in Asia, with less than 2% of the population paying income tax. Past attempts to expand the tax net have faced challenges, but officials say that monitoring social media offers faster and more effective leads.