Pakistan’s tax authorities have opened a new front in their battle to plug leaks in revenue collection: social media. Diamond-studded bridal sets, drone light shows and extravagant parties have become evidence for a newly created “Lifestyle Monitoring Cell” that is trawling Instagram, TikTok and YouTube to flag people living far beyond their declared means.
A senior official at the Federal Board of Revenue (FBR) told Reuters the new approach relies on open-source intelligence. “It’s open-source – their Instagram accounts are a public declaration,” the official said, adding that tax evasion cases can now be opened “in a matter of hours.” The FBR itself did not respond to a Reuters request for comment.
A digital hunt for hidden wealth
The cell, staffed with around 40 investigators, was set up this month to address Pakistan’s chronic revenue shortfalls and meet tougher International Monetary Fund-backed tax targets. Less than 2 per cent of Pakistanis pay income tax, giving the country one of the lowest tax-to-GDP ratios in Asia. It has turned repeatedly to the IMF, signing nearly two dozen programmes over the decades.
An internal document seen by Reuters says the unit’s mandate is to “systematically monitor, scour and analyse data from major social media platforms” to identify people who display wealth but are either not registered for tax or declare incomes that appear inconsistent with their expenditures and assets.
The cell will create digital profiles of suspects, assess the money behind their lifestyles and prepare reports that can be used in tax or money laundering investigations. It will also maintain a central database of screenshots, timestamps and other evidence.
Diamonds, drones and DJs under scrutiny
Among the first cases under review is a wedding estimated to have cost nearly 248 million rupees (around $878,000), according to officials quoted by Reuters. Documents seen by Reuters showed close to $283,000 spent on diamond and gold jewellery and another $124,000 on bridal outfits by leading South Asian designers. Guests walked through floral archways while drones lit up the night sky for 400 invitees served multi-course meals. International consultants choreographed the six-day affair, which also featured top makeup artists, DJs and qawwali music bands.
“People themselves tag the event managers, the caterers, the jewellers, etc. It makes our work easy,” another official said, adding that the spending of the two families involved did not match their income declarations.
Officials say the wedding is just one of several high-value cases under scrutiny. The unit is also examining videos of luxury cars, tours of high-end properties and influencers flaunting expensive lifestyles.
Faster leads than before
Past attempts to widen Pakistan’s tax net have largely fizzled. But officials argue that the new focus on social media gives them stronger leads and a faster way to flag undeclared wealth. Despite being only weeks old, the Lifestyle Monitoring Cell has already shortlisted multiple files for deeper scrutiny, according to officials.
Whether the new approach will deliver more tax revenue or face the same resistance as earlier crackdowns remains to be seen. For now, Pakistan’s tax collectors are finding that Instagram, TikTok and YouTube offer an unexpected but revealing trail of evidence.
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