In an effort to boost tax collection, the Federal Board of Revenue (FBR) is strategising to impose taxes on TikTokers, it has emerged.
As per the details, Senator Faisal Vawda informed a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, that the tax watchdog was planning to tax TikTokers’ income.
He went on to say that the largest share of recoverable taxes would come from Punjab as the province has the largest number of internet users.
The move comes days after FBR collected data of around 100,000 individuals flaunting their wealth on social media, with the revenue watchdog reportedly poising to take action against them.
According to reports, FBR will audit 100,000 wealthy people in the initial phase and people showcasing their luxury lifestyle online, including mansions, expensive cars, jewelry and other assets, will have to disclose their source of income. Individuals wearing clothes worth as much as $20,000 as a sign of the extreme luxury at weddings, will also come under the tax net.
Meanwhile, the tax authority will also compare income tax returns submitted last year with those filed this year.
FBR has made it clear that individuals who provide accurate and updated information in their income tax returns will not be penalised. However, those who fail to disclose their lavish spending or luxury assets risk facing strict legal consequences.