ISLAMABAD: Concerns are mounting within the country’s top tax machinery that Pakistan’s 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 has learned from official sources.

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.

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. “More than 40 per cent of taxpayers declared nil income in their returns filed up to Sept 27,” a tax official confirmed to Dawn on Saturday.

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........

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