The Federal Board of Revenue (FBR)’s move to track potential tax evaders through social media has ignited widespread criticism across business and social circles. The tax authority reportedly collected data of thousands of users and issued notices to those flagged for “unexplained wealth”, triggering outrage amongst traders, financial experts and online influencers who call the move invasive and misguided.

FBR officials claim the measure is part of an established “lifestyle-based” assessment method, where visible assets and spending patterns are examined to gauge undeclared income. However, critics argue the surveillance blurs ethical boundaries, undermines privacy and unfairly targets middle-income earners and small business owners.

With collected data, FBR has surveyed private hospitals, gyms, clubs and real estate firms.

“FBR is not doing its actual work, which is to fix the economic condition by flagging actual tax evaders and corruption cases,” said Ajmal Baloch, President of the All-Pakistan Trade Unions. He reassured that jewellers’ rights will be protected.

Sardar Tahir, President of the Islamic Chamber of Commerce and Economics, responded with a call for peace. “If there are plans to increase the tax base, it will be done in coordination with jewellers and shop owners,” he said.

Baloch explained that FBR insists on disclosing all transactions jewellers make, which upsets customers who prefer to keep their purchases private. Often people don’t reveal purchases to family members or have precious heirlooms they don’t want on official records. This renders jewellers unable to explain their income.

Haji Rasheed Ray, President of the All-Punjab Gem Merchants and Jewellers Association, warned that FBR’s social media monitoring policy could hurt jewellery sales. Customers may hesitate to buy items they can no longer showcase online without risking tax scrutiny.

In Rawalpindi’s Sarafa Bazaar, veteran gold trader Haji Asghar said a protest was held last month on Murree Road against FBR taxes.
Ray proposed an alternative, suggesting the government register all gold and silver bar manufacturers with PSQCA and introduce a fixed tax system based on bar weight, ranging from Rs2,000 to Rs10,000 per piece. He recommended QR-coded bars linked to buyer CNICs for digital traceability.

“Tax collection through threats is ineffective, but unfortunately, it has always been FBR’s modus operandi,” said Atiq Mir, President of the Karachi Tajir Ittehad. People are more willing to pay taxes when offered incentives. Pakistan heavily relies on indirect taxes, which burden the general population.

Mir criticised FBR for threatening taxpayers by closing businesses or seizing bank accounts. He advocated for a redeveloped tax policy that considers ground realities and involves traders, businessmen and industrial associations.

Irshad Ahmed, a financial auditor, said the FBR’s move was unjustified. “In financial investigations, privacy concerns arise only 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 people often exaggerate lifestyles or post outdated content that doesn’t reflect actual income.

Backing this view, Baloch said most jewellery displayed in shops is artificial, terming FBR’s assumptions “nonsensical” and condemning the move as targeting working and middle classes. Tax expert Zeeshan Merchant argued that social media cannot provide definitive proof of wealth. “The court requires definite verifiable information, not guesswork,” he said. He highlighted selective showcasing, where some individuals might not share wealth publicly whilst others flaunt it.

Speaking to The Express Tribune, Dr Najeeb Ahmad, FBR spokesperson, explained that lifestyle-based taxing is an old concept. FBR assesses an individual’s lifestyle through social media or offline activities to determine tax liability.

Tax authorities confront individuals about their lifestyle, which may include luxury assets such as high-end cars or large mansions, asking them to explain how they afford these based on tax returns. If the explanation is satisfactory, the matter is closed. If not, they may impose taxes accordingly.