Insta rich, tax poor: Crackdown begins against flashy influencers and luxury lifestyles

Dubai: Pakistan’s Federal Board of Revenue (FBR) has launched an artificial intelligence - powered “Lifestyle Monitoring Cell” to hunt down social media influencers, celebrities, and high-fliers whose luxury lifestyles do not match their declared incomes. Welcome to Pakistan’s first digital-era tax crackdown.

The high-tech initiative, run by the FBR’s Intelligence and Investigation Wing, scans online platforms like Instagram, TikTok, YouTube, and Facebook to identify users flaunting wealth, designer wardrobes, luxury cars, private jet selfies, and exotic vacations while paying little or no tax.

“We have identified around four million potential tax evaders through this cell and other data-driven methods,” said Hamid Attique Sarwar, a senior Inland Revenue official. “About 10 per cent of these, roughly 400,000 individuals, are now under detailed scrutiny.”

Pakistan, with a population of over 240 million, has one of the lowest tax-to-GDP ratios in South Asia. The government has set a record Rs14.13 trillion ($47.4 billion) tax target for fiscal 2025—26 as part of IMF-driven reforms to raise state revenues and broaden the tax base.

To meet that goal, the FBR has sent warning messages to nearly 8 million citizens whose social media lifestyles appear far beyond their declared incomes.

“We don’t hate rich people. We just want them to pay their fair share so the burden doesn’t fall solely on the salaried class,” ,” Sarwar said.

Under the new rules, the FBR’s Lifestyle Monitoring Cell can estimate hidden income, cross-check data with the national tax database, and initiate inquiries under Pakistan’s tax and anti — money laundering laws.

Officials say the cell has already flagged individuals driving imported luxury cars, owning multimillion-dollar homes, or hosting destination weddings, all while declaring meagre earnings. One case involved a person owning a Rs4 billion ($14.14 million) mansion but declaring just $1,400 in monthly income.

The agency is also reviewing the declared incomes of top Pakistani singers, designers, and influencers, with several high-profile cases already prepared in Rawalpindi, Lahore, Bahawalpur, and Islamabad.

Despite attempts by some to scrub incriminating posts, the FBR says it has already archived digital evidence. “Deleting posts won’t help, we have already captured the data,” said an FBR official.

Officials confirmed that over 100,000 social media accounts are being monitored daily, with algorithms comparing visible spending to reported income.

The FBR is also gathering spending data from wedding halls, dress designers, jewellers, and beauty salons to track major events that could reveal hidden wealth. “Our purpose is not to embarrass people. It is to build a culture where showing off wealth doesn’t come at the cost of honesty,” ,” Sarwar added.