The federal government is unlikely to impose new taxes in the upcoming federal budget for fiscal year 2026-27 and instead plans to meet its revenue targets through stricter enforcement and administrative measures.
The Federal Board of Revenue (FBR) aims to generate around Rs. 780 billion next year through enforcement actions, documentation measures, and improved tax recovery instead of introducing new taxes.
The government is considering relief measures for salaried individuals, the corporate sector, and taxpayers currently paying Super Tax. Any revenue loss resulting from such relief is expected to be offset through alternative revenue generation measures rather than new taxation.
The overall net impact of taxation measures in the next budget is expected to remain neutral, meaning the government may provide relief in some areas while recovering the shortfall through stronger enforcement.
The FBR collected around Rs. 389 billion through enforcement measures during the current fiscal year, including more than Rs. 50 billion recovered from crackdowns on illicit and smuggled cigarettes in the tobacco sector.
The government now wants to double that amount in FY27.
The tax authority had previously recovered Rs. 874 billion through enforcement measures during FY25 compared with Rs. 105 billion in FY24.
Next fiscal year is expected to become more difficult for individuals and businesses involved in underreporting income, concealing assets, or operating outside the tax net.
The government is also upgrading FBR’s information technology infrastructure to improve tax compliance and identify potential taxpayers who are currently outside the formal tax system.