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ISLAMABAD: Concerns are mounting within the country\u2019s top tax machinery that Pakistan\u2019s income tax system is failing to capture the true wealth of its citizens, as approximately half of taxpayers continue to declare nil incomes far below the lavish lifestyles they maintain, Dawn<\/em> has learned from official sources.<\/p>\n As of June 30, the Federal Board of Revenue (FBR) had received 5.9 million income tax returns for the tax year 2024. Notably, nearly half of these filings came from taxpayers who declared zero income, underscoring a persistent trend of taxpayers declaring nil income.<\/p>\n This pattern is continuing into the current tax year, with early data for 2025 reflecting a similar surge in filings from individuals reporting no taxable earnings. \u201cMore than 40 per cent of taxpayers declared nil income in their returns filed up to Sept 27,\u201d a tax official confirmed to Dawn<\/em> on Saturday.<\/p>\n People are living in palatial houses, enjoying 24\/7 air conditioning, riding fancy cars, wearing branded clothes, making multiple international trips, buying branded watches\/jewellery and other luxuries. Still, their income tax returns do not reflect their lifestyles. The income declared and tax paid is not reflective of their living standards, as pointed out after an internal analysis of the tax returns filed with the FBR.<\/p>\n Despite opulent living, nearly 50pc of return filers report zero income, revealing a failing system<\/p>\n<\/blockquote>\n Officials said that advanced tax jurisdictions have long leveraged familial and community networks to uncover hidden assets \u2014 rewarding whistleblowers handsomely while safeguarding their identities.<\/p>\n Pakistan\u2019s current framework offers a maximum reward of Rs5m for informants, but the FBR is now pushing to raise that ceiling dramatically to Rs150m, structured on a graduated scale.<\/p>\n \n