3 min read
The Federal Board of Revenue (FBR) in Pakistan has established a new 40-member Lifestyle Monitoring Cell in a bold move to combat tax evasion. The cell is scanning social media platforms like Instagram, TikTok, and YouTube to identify instances of extravagant spending that do not align with declared incomes. By cross-referencing public displays of wealth with official tax filings, investigators aim to close the gap on undeclared assets.
Lifestyle Monitoring Cell: Why Now?
The initiative comes at a crucial time for Pakistan’s government, which is under pressure to increase its tax base due to revenue shortfalls and looming IMF-mandated targets. Pakistan has one of Asia’s lowest tax-to-GDP ratios. Less than 2% of the population currently pays income tax. Moreover, the FBR views social media as a powerful, public-facing tool to modernise tax collection.
Social Media Provides the Evidence of Tax Evasion
Officials note that social media makes the process more efficient, as individuals often publicly document their high-spending lifestyles. Influencers, celebrities, and others frequently tag vendors, jewellers, and event organisers, inadvertently creating a digital paper trail of their expenditures.
- High-profile wedding under scrutiny
- A prime example already under review is a six-day wedding celebration with a documented cost nearing Rs. 248 million (approximately USD 878,000). The event featured:
- Drone light shows
- Live DJs and makeup artists
- Floral decorations
- Over USD 400,000 spent on jewellery and bridal wear alone.
FBR investigators are creating digital profiles based on this publicly available evidence, including screenshots, timestamps, and vendor tags, to cross-verify against tax filings and asset portfolios.
Lifestyle Monitoring Cell Scope: Beyond Weddings
The Lifestyle Monitoring Cell’s mandate covers a broad range of publicly displayed affluence, including:
- Luxury vehicles
- High-end property tours
- Influencers flaunting lavish lifestyles
Evidence is compiled into a central database to support tax and money laundering investigations, particularly in cases where traditional audits have been unsuccessful.
Balancing Accountability and Privacy
While the initiative is praised by supporters as a necessary step toward fairer taxation, critics raise concerns about privacy and potential misuse of personal data.
Several well-known YouTubers and influencers have already been issued notices for tax non-compliance in the past year, with some facing court cases over undeclared income from sponsored content and brand deals. Authorities have also flagged luxury car purchases and foreign trips documented online, which often contradict the earnings reported on their tax returns.
However, the FBR maintains that monitoring public posts is essential to hold wealthy individuals accountable and prevent the burden of low tax compliance from falling disproportionately on ordinary citizens.
By using social media as an “evidence room,” Pakistan’s tax authority aims to turn public displays of wealth into a tool for accountability, not just admiration.
