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Pakistan Moves to Overhaul Whistleblower Rewards as Nil Tax Filings Persist

Tax officials are drafting a plan to sharply raise whistleblower rewards with strict secrecy to surface undeclared assets.

Overview

  • FBR data show nearly half of 5.9 million returns for tax year 2024 declared zero income, with more than 40% of filings by September 27, 2025 also reporting nil income.
  • Officials point to a glaring gap between reported incomes and evident wealth, citing luxury homes, high-end vehicles, branded goods and frequent foreign travel.
  • A proposal under development would lift the whistleblower payout ceiling from Rs5 million to Rs150 million on a graduated scale.
  • The revamp would guarantee confidentiality under Section 216, streamline the reward process, speed payouts and confine whistleblower-triggered inquiries to the current tax year to encourage voluntary compliance.
  • Authorities plan to tap tips from extended families, neighbors, colleagues and domestic staff, alongside stronger audits, third-party data use and greater digitisation of the tax system.