Islamabad, September 22, 2025 – In a dramatic move to unearth the mountain of undeclared wealth hidden in Pakistan’s shadow economy, the Federal Board of Revenue (FBR) is preparing a mega increase in rewards for whistleblowers, transforming them into a new front-line force in the battle against tax evasion.
According to senior insiders, new rules are being drafted to multiply the current rewards system many times over, making information-sharing about black money far more lucrative. The initiative stems from a powerful letter written by the Chief Commissioner Inland Revenue of RTO Islamabad to Member IR Operations, demanding urgent reform.
At present, the maximum cap for rewards to whistleblowers is Rs5 million. The RTO’s proposal calls for a staggering boost — pushing the figure to as high as Rs150 million, scaled according to the significance of information provided. Officials believe such a windfall could be the game-changer needed to pry open the walls of secrecy shielding untaxed fortunes.
But the plan is not just about money. The RTO emphasized that secrecy must be absolute, backed by law and punishable under Section 216 of the Income Tax Ordinance, 2001 if breached. Without guaranteed anonymity, whistleblowers may hesitate, despite the lure of millions.
The communication paints a striking picture of tax dodgers living in palatial homes, cruising luxury cars, wearing branded clothing, jetting abroad, and flaunting designer watches and jewelry — all while filing tax returns that grossly understate their wealth. “Declared income is a poor reflection of actual lifestyles,” the RTO stressed.
Pakistan’s economy, still dominated by cash transactions, remains heavily undocumented. Even though digital integration of tax data has improved, the sheer scale of the black economy makes enforcement nearly impossible without tapping informal networks. And here lies the key: relatives, neighbors, employees, and even domestic staff already hold intimate knowledge of undeclared wealth. With the right incentives, these overlooked insiders could become whistleblowers capable of exposing hidden assets.
The proposal cites advanced economies where familial and neighborhood information networks are deliberately tapped through structured whistleblowing programs. Drivers, accountants, low-paid employees, and domestic aides — often privy to their employers’ lavish spending habits — could, with rewards and secrecy guaranteed, step forward as the FBR’s most valuable allies.
“Whistleblowers can help transform social envy into a national cause,” the RTO explained. “But this requires two pillars: unbreakable secrecy and irresistible rewards.”
Officials argue that with the September 30, 2025 tax filing deadline looming, the timing could not be better. By restricting the scheme initially to the 2025 tax year, taxpayers could be nudged into voluntary compliance without fearing retroactive audits. If implemented, the FBR’s plan will not only shake the culture of unchecked tax evasion but also empower ordinary citizens to become active partners in reform. With whistleblowers now positioned to earn fortunes by exposing untaxed wealth, Pakistan’s hidden economy may finally face its reckoning.