Property buyers underreport funds: 8,697 individuals holding Rs750bn deposits report zero income: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) revealed on Monday that 8,697 individuals holding deposits worth Rs750 billion reported zero income, while nearly 80 percent of top property buyers materially underreported their deposits in tax filings.

The FBR revealed this in a meeting of the Senate Standing Committee on Finance and Revenue, which continued its detailed examination of the Finance Bill 2026 under the chairmanship of Saleem Mandviwalla.

The committee was informed that data analysis had identified approximately 8,697 individuals with deposits amounting to approximately Rs750 billion who had not contributed income tax, highlighting the importance of expanding the tax net and improving compliance. FBR officials further informed the committee that 98.9 percent of high deposit individuals underreported bank flows.

The committee reviewed matters relating to data integration, documentation of the economy, and expansion of the tax base. The FBR informed members that efforts are underway to enhance coordination with the State Bank of Pakistan to improve the use of financial data for tax compliance purposes. Members were briefed on proposals concerning transaction monitoring and measures intended to strengthen documentation across various segments of the economy.

The Committee members also raised concerns about the FBR’s performance and its frequent policy changes over the years. Mandviwala said the FBR had conducted numerous experiments during the past decade but failed to achieve lasting results. The FBR has carried out many experiments over the last ten years. He recommended an audit on how many actions were taken and later undone during the last ten years. The FBR endorsed the proposal while saying it would also expose elite capture.

Copyright Business Recorder, 2026