THE FBR is finally moving against tax dodgers who openly boast of their extravagant lifestyles but pay next to nothing in taxes. It has reportedly prepared lists of taxpayers whose social media presence paints a very different picture from their declared incomes. Their feeds flaunt luxury cars worth billions, designer apparel, frequent foreign travel and high-end accessories. But their tax returns tell a story of meagre, or at best, modest earnings. The cases being examined include a fintech entrepreneur who reportedly owns 30 luxury cars — among them Lamborghinis and a Rolls Royce — valued at Rs2.74bn, yet declares negligible income. Then there is a travel influencer who has visited 25 countries in five years but reported an annual income that could barely fund one such trip. Another content creator, known for displaying luxury jewellery, designer outfits, cars, and high-end watches and gadgets, has declared only Rs3.5m to Rs5.5m in income over the past few years. These examples highlight not just the brazenness of some tax evaders but also the weakness of the country’s enforcement system.

It is therefore encouraging that the FBR is now acting against those living far beyond their declared means. But this effort must not stop here. Limiting scrutiny to people whose lifestyles are publicly visible would make the exercise appear selective and symbolic. The tax authorities need to look beyond that. The board faces an uphill task in meeting its ambitious annual revenue target of Rs14.13tr this fiscal year and is already short by Rs274bn in the first four months to October despite an 18pc increase in the number of tax filers to 5.9m. The widening gap in collections suggests that the focus must shift from simply increasing the number of filers to expanding the base itself. That means bringing into the net sectors that have long escaped effective taxation: retail, real estate, professional services such as doctors and lawyers, and large landholders. These groups account for vast and largely untaxed portions of the economy. Without their inclusion, the tax system will remain weak, unfair and unsustainable. The FBR’s latest initiative is, therefore, a welcome step. But its credibility will rest on whether it can apply the same rules across the board. No one — whether an online celebrity, a powerful businessman or a feudal landlord — should be allowed to stay outside the reach of the law.

Published in Dawn, November 5th, 2025