THIS is with reference to the report “Zero income, millionaire lifestyle: Pakistan’s tax system under fire” (Sept 28), which highlighted how many taxpayers declare nil income despite living opulent life-styles, and the plan by the Federal Board of Revenue (FBR) to expand whistle-blower incentives — from the current ceiling of Rs5 million to Rs150 million — and to guarantee confidentiality for facilitating attempts to unearth hidden wealth.

While the proposed reforms are on the right track, it would help if the whistle-blower mechanism is made to cover all segments of society instead of targeting the business community alone. It also seems that the FBR views businessmen as ready targets, often portraying them as thugs, while treating everyone else — politicians, bureaucrats, judges and uniformed services — as if they are saints beyond reproach.

In larger public discourse, tax evasion is routinely framed as the fault of the busi-ness people. Yet, immense hidden wealth, discretionary perks and hush funds exist across all segments of officialdom. A BPS-19 officer, like, say, an assistant commissioner, and those higher up in the pecking order enjoy resources, privileges and free access to discretionary funds that far exceed those of many ordinary businessmen.

How often is their lifestyle scrutinised against their declared income? Whistle-blower policies which focus on businesses alone represent selective accountability that often leaves powerful public actors insulated.

Extending whistle-blower protection to all strata across society would yield several benefits. First, citizens would more readily accept tax reforms if no one was above scrutiny. Second, deterrence would strengthen, as office-bearers would know that their perks, hidden allowances, or off-the-book assets could be exposed. Third, insiders closest to power — staff, contractors, personal assistants and others — could safely report hidden misdeeds. Finally, broadening the scope would correct the policy imbalance that in currently sharply fixated only on businesses while entirely overlooking the state apparatus.

The most important thing is that the system should provide a mechanism which will legally guarantee confidentiality, with strict penalties for breaches. It should offer rewards tied to the magnitude and credibility of disclosures, and due safe-guards against malicious or frivolous claims, with penalties for defamation and early verification filters.

Unless we democratise the whistle-blower mechanism, we will only entrench inequality in enforcement. The FBR and, indeed, the government at large should help Pakistan move towards a truly just, accountable and transparent system.

Name withheld on request
Karachi

Published in Dawn, October 2nd, 2025

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