Influencers call politics ‘futile’, claim social media posts create ‘fabricated’ images of wealth
The Federal Board of Revenue’s (FBR) move to track potential tax evaders through social media has ignited widespread criticism across 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 move invasive and misleading.
FBR officials claim that the measure is part of an established “lifestyle-based” assessment method where visible assets and consumption patterns are examined to gauge black income. Critics, however, argue that the surveillance blurs ethical lines, undermines privacy and unfairly targets middle-income and small business owners.
With collected data, FBR has investigated private hospitals, gyms, clubs and real estate firms.
“The FBR is not doing its real job, which is to rectify the economic condition by flagging actual tax evaders and corruption cases,” said Ajmal Baloch, president of the Pakistan Trade Unions. He assured that the jewelers’ rights will be protected.
Sardar Tahir, chairman 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 shopkeepers,” he said.
Baloch explained that the FBR insists on disclosing all transactions jewelers make, upsetting customers who prefer to keep their purchases private. Often people don’t disclose purchases to family members or have precious heirlooms they don’t want on official records. This makes goldsmiths unable to explain their income.
Haji Rasheed Ray, president of the All-Punjab Gem Merchants and Jewelers Association, warned that the FBR’s social media monitoring policy could hurt jewelery sales. Customers may hesitate to buy items they can no longer display online without risking tax audits.
In Rawalpindi’s Sarafa Bazaar, veteran gold trader Haji Asghar said a protest was held last month on Murree Road against FBR taxes.
Suggesting an alternative, Ray suggested that the government register all gold and silver bullion producers with the PSQCA and introduce a flat tax system based on the weight of the bar, ranging from Rs2,000 to Rs10,000 per piece. He recommended QR-coded bars linked to buyers’ CNICs for digital traceability.
“Tax collection through intimidation is ineffective but unfortunately it has always been the FBR’s modus operandi,” said Atiq Mir, president of Karachi Tajir Ittehad. People are more willing to pay taxes when they are offered incentives. Pakistan is heavily dependent on indirect taxes which burden the general population.
Mir criticized the FBR for threatening taxpayers by closing down businesses or seizing bank accounts. He advocated a newly developed tax policy that takes into account the realities on the ground and involves traders, businessmen and industry associations.
Irshad Ahmed, a financial accountant, said the FBR’s move was unjustified. “In financial investigations, privacy concerns only arise when allegations exist, but here people are being investigated without any charges.”
TikTok influencer Maha Shaikh called the policy futile, saying social media projects a fabricated image. Instagram influencer Saman Ali Khan agreed, noting that people often exaggerate lifestyles or post outdated content that doesn’t reflect actual income.
Backing this view, Baloch said that most jewelery displayed in shops is artificial, labeling the FBR’s assumptions as “nonsense” and condemning the move as targeting the working and middle class. Tax expert Zeeshan Merchant argued that social media cannot provide a definitive proof of wealth. “The court requires concrete verifiable information, not guesswork,” he said. He highlighted selective display, where some individuals may not share wealth publicly, while others do.
Speaking to The Express Pakinomist, Dr. Najeeb Ahmad, FBR spokesperson that lifestyle based taxation is an old concept. FBR assesses a person’s lifestyle through social media or offline activities to determine tax liability.
The tax authorities confront individuals about their lifestyles, which may include luxury assets such as high-end cars or large mansions, and ask them to explain how they can afford these based on their tax returns. If the explanation is satisfactory, the matter is closed. If not, they may impose taxes accordingly.
