Islamabad: The Federal Board of Revenue (FBR) has identified large-scale underreporting of income and financial activity among high-value taxpayers and property buyers, with data showing significant discrepancies between declared income and actual bank deposits.
The disclosure was made during a meeting of the Senate Standing Committee on Finance and Revenue, which continued its detailed review of the Finance Bill 2026 under the chairmanship of Senator Saleem Mandviwalla.
According to FBR officials, analysis of financial data revealed that around 8,697 individuals collectively held deposits worth approximately PKR 750 billion but reported zero taxable income. The findings have raised concerns over gaps in income declarations and the effectiveness of tax compliance mechanisms.
The committee was further informed that nearly 80 percent of top property buyers materially underreported their bank deposits in tax filings. Officials said the data also showed that 98.9 percent of high-deposit individuals underreported their financial inflows, highlighting widespread inconsistencies in declared earnings.
FBR officials briefed lawmakers on ongoing efforts to strengthen data integration with the State Bank of Pakistan (SBP) in order to improve monitoring of financial transactions and expand the tax base. The initiatives are aimed at enhancing documentation of the economy and improving compliance across multiple sectors.
During the meeting, members of the committee raised concerns over the FBR’s performance and frequent policy changes over the past decade. Chairperson Mandviwalla remarked that despite multiple reforms and “experiments” in the tax system, sustainable results had not been achieved.
He also suggested conducting an audit of policy actions taken and later reversed over the last ten years, a proposal which the FBR reportedly supported, stating that such a review could help expose patterns of elite capture within the system.
The committee continued its clause-by-clause examination of the Finance Bill 2026, focusing on measures aimed at improving tax compliance, data usage, and revenue collection efficiency.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
