Influencers call policy ‘useless’, claim social media posts create ‘fabricated’ images of wealth
The Federal Board of Revenue’s (FBR) decision to track potential tax evaders through social media has sparked widespread criticism in business and social circles. The tax authority reportedly collected data from thousands of users and issued notices to those flagged for “unexplained wealth,” sparking outrage among traders, financial experts and online influencers who call the measure invasive and misguided.
FBR officials say the move is part of an established “lifestyle-based” assessment method, where visible assets and spending patterns are examined to measure undeclared income. However, critics argue that surveillance blurs ethical boundaries, undermines privacy and unfairly targets middle-income people and small business owners.
Using the data collected, FBR has surveyed private hospitals, gyms, clubs and real estate companies.
“The FBR is not doing its real job, which is to fix the economic situation by pointing out tax evaders and corruption cases,” said Ajmal Baloch, president of All Pakistan Trade Unions. He assured that the rights of jewelers will be protected.
Sardar Tahir, president of the Islamic Chamber of Commerce and Economy, responded with a call for peace. “If there are plans to increase the tax base, it will be done in coordination with jewelers and merchants,” he said.
Baloch explained that FBR insists on disclosing all transactions carried out by jewelers, which upsets customers who prefer to keep their purchases private. Often, people do not disclose their purchases to family members or have precious heirlooms that they do not want in official records. This means that jewelers cannot explain their income.
Haji Rasheed Ray, president of All Punjab Gem Traders and Jewelers Association, warned that FBR’s social media monitoring policy could hurt jewelery sales. Customers may be hesitant to purchase items they can no longer display online without risking tax scrutiny.
In Rawalpindi’s Sarafa Bazaar, veteran gold trader Haji Asghar said a protest was held on Murree Road against FBR taxes last month.
Ray proposed an alternative, suggesting that the government register all gold and silver bullion manufacturers with the PSQCA and introduce a fixed tax system based on the weight of the bullion, ranging between Rs 2,000 and Rs 10,000 per piece. It recommended bars with QR codes linked to buyers’ CNICs for digital traceability.
“Collection of taxes through threats is ineffective, but unfortunately it has always been the modus operandi of FBR,” said Atiq Mir, chairman of Karachi Tajir Ittehad. People are more willing to pay taxes when they are offered incentives. Pakistan relies heavily on indirect taxes, which are a burden on the general population.
Mir criticized FBR for threatening taxpayers by closing businesses or seizing bank accounts. He advocated a reshaped fiscal policy that takes into account ground realities and involves traders, businessmen and industry associations.
Irshad Ahmed, financial auditor, said the FBR’s move was unjustified. “In financial investigations, privacy concerns arise only when there are accusations, but here people are investigated without charges.”
TikTok influencer Maha Shaikh called the policy useless and said social media projects a fabricated image. Instagram influencer Saman Ali Khan agreed, noting that people often exaggerate their lifestyles or post outdated content that doesn’t reflect actual income.
Backing this view, Baloch said most of the jewelery displayed in stores is artificial, terming FBR’s assumptions as “nonsense” and condemning the move for targeting the middle and working classes. Tax expert Zeeshan Merchant argued that social media cannot provide definitive proof of wealth. “The court demands definitive and verifiable information, not conjecture,” he said. He highlighted selective display, where some people may not share their wealth publicly, while others flaunt it.
Speaking to The Express PAkGazette, FBR spokesperson Dr Najeeb Ahmad explained that lifestyle-based taxes are an old concept. FBR assesses the lifestyle of an individual through social media or offline activities to determine tax liability.
Tax authorities confront people about their lifestyle, which may include luxury goods such as high-end cars or large mansions, and ask them to explain how they can afford them based on their tax returns. If the explanation is satisfactory, the matter is closed. Otherwise, they may impose taxes accordingly.
