Islamabad: The Federal Board of Revenue (FBR) has uncovered large-scale underreporting of income and financial activity among high-value taxpayers and property buyers, highlighting significant gaps between declared earnings and actual bank deposits.
The disclosure came during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, which continued its detailed review of the Finance Bill 2026.
According to FBR officials, data analysis revealed that around 8,697 individuals collectively held approximately PKR 750 billion in bank deposits while reporting zero taxable income. The findings have raised serious concerns about income misreporting and weaknesses in Pakistan’s tax compliance system.
The committee was further informed that nearly 80 percent of major property buyers had significantly underreported their bank deposits in tax filings. Officials also stated that 98.9 percent of high-deposit individuals showed discrepancies between declared income and actual financial inflows, pointing to widespread gaps in reported earnings.
FBR officials briefed lawmakers on ongoing efforts to integrate data systems with the State Bank of Pakistan (SBP) to improve monitoring of financial transactions and strengthen tax enforcement. These measures are aimed at expanding the tax base and improving documentation across the economy.
During the session, committee members expressed concern over the FBR’s performance and the frequent policy changes made over the past decade. Chairperson Mandviwalla noted that despite repeated reforms, sustainable improvement in revenue collection had not been achieved.
He also proposed a comprehensive audit of tax policies introduced and later reversed over the last ten years, a suggestion supported by FBR officials, who said such a review could help identify structural weaknesses and instances of elite capture within the system.
The committee continued its clause-by-clause review of the Finance Bill 2026, focusing on measures designed to improve compliance, strengthen data usage, and enhance overall revenue collection efficiency.
