FBR to crack down on wealthy displaying luxury on social media

The Federal Board of Revenue (FBR) has decided to take action against individuals who display lavish lifestyles on social media but either pay minimal taxes or remain outside the tax net.

According to officials, the FBR’s social media monitoring team has collected data of around 100,000 wealthy individuals showcasing luxury houses, cars, jewellery, and other extravagant possessions online. The board is assessing their income and expenses to identify discrepancies with their declared tax returns.

Officials said people spending heavily on weddings will also come under scrutiny, noting that some are reportedly wearing suits worth up to $20,000 at such events. Individuals who fail to reflect their luxurious lifestyles in their income tax returns are likely to be targeted.

The FBR added that tax returns filed last year will be compared with those of the current year, with nearly 80% of declarations expected to undergo audit. Those exhibiting wealth will be required to justify their sources of income through updated tax returns.

Authorities further warned that individuals not disclosing annual increases in income may face legal action. However, those who update their returns with accurate information will not face immediate penalties.