ISLAMABAD: Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, has disclosed that around 9,000 individuals in Pakistan collectively hold nearly Rs. 750 billion in bank deposits despite paying zero income tax, highlighting the country’s vast undocumented wealth and weak tax compliance.
Speaking before the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, the FBR chairman shared key findings from the tax authority’s growing use of technology and data integration under its ongoing tax reforms.
According to Langrial, the FBR’s access to multiple databases has uncovered significant discrepancies between declared income and actual financial activity. He revealed that thousands of wealthy individuals maintain substantial bank balances while remaining outside the income tax net.
The FBR chief further informed lawmakers that 98.9 percent of income tax return filers declare lower income than what is reflected through available financial and economic data, underscoring the scale of underreporting in the tax system.
FBR Expands Data-Driven Tax Enforcement
The disclosure comes as the government intensifies efforts to broaden the tax base and increase revenue collection under the Budget 2026-27. The FBR has been integrating banking, property, vehicle, utility, and other financial databases to identify high-net-worth individuals who may be avoiding taxes.
Officials say advanced data analytics and artificial intelligence tools are being deployed to detect mismatches between taxpayers’ declared income and their actual spending patterns, assets, and financial transactions.
Faceless Taxation System Planned
To improve transparency and reduce direct interaction between taxpayers and tax officials, Langrial announced that the FBR is considering the implementation of a faceless taxation system.
Under the proposed model, tax assessments and audits would be conducted digitally, minimizing human intervention and reducing opportunities for corruption and discretionary decision-making.
“This system requires no direct contact between tax officials and taxpayers,” Langrial told the committee.
Push to Increase Tax Compliance
The latest revelations support the government’s argument that a large segment of Pakistan’s affluent population remains undertaxed despite possessing significant financial resources. The FBR believes that better use of technology, data sharing, and automated compliance mechanisms will help bring non-filers and under-reporting taxpayers into the formal tax net.
The government has set ambitious revenue targets for the coming fiscal year and is relying heavily on digital enforcement measures to improve tax collection without imposing excessive new taxes on compliant taxpayers.
