FBR tightens noose around wealthy social media influencers over tax evasion

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The Federal Board of Revenue (FBR) has intensified its crackdown on high-earning social media personalities, launching enforcement action against 38 prominent YouTubers, TikTok stars, and digital influencers for alleged income concealment and unexplained wealth totaling Rs15 billion.

Sources said the move targets influencers who openly showcase lavish lifestyles and high-value expenditures on digital platforms while allegedly evading taxes or underreporting income and assets. The action is being spearheaded by the FBR’s Lifestyle Monitoring Cell, which has identified significant discrepancies between declared earnings and actual spending patterns.

According to officials, the Cell uncovered substantial undeclared expenditures, stark mismatches between reported income and lifestyle, and large-scale tax concealment. As a result, the FBR has initiated comprehensive income tax audits to recover unpaid taxes along with penalties for concealment spanning several previous tax years.

In many cases, regional tax offices have already begun detailed scrutiny and field audits of the targeted influencers. The Lifestyle Monitoring Cell has also recommended the issuance of formal notices, fresh tax assessments, and expedited recovery proceedings to ensure compliance.

Furthermore, the Directorate General of Intelligence and Investigation–Inland Revenue has circulated intelligence advisories to relevant field formations, directing them to take immediate action against the individuals involved.

Investigations revealed that declared income figures in tax returns are sharply inconsistent with the influencers’ publicly displayed lifestyles. Officials said strong evidence suggests that significant sums of concealed income were used to fund luxury spending, with these funds not reported to tax authorities.

The FBR’s latest operation underscores the government’s broader push to widen the tax net and curb tax evasion in Pakistan’s fast-growing digital economy.