Business Recorder
ISLAMABAD: The government is unlikely to introduce any new taxes in the upcoming budget, as it plans to achieve next year’s revenue target through enforcement and administrative measures estimated at Rs 778-780 billion. Sources told Business Recorder that the federal budget for the next fiscal year is expected to provide relief to taxpayers, with the authorities relying on alternative revenue-generation measures to offset potential revenue losses. If the government provides relief to the salaried class, the corporate sector, and taxpayers paying Super Tax, the revenue loss would be bridged through alternate revenue measures. However, no new tax would be imposed in the coming 2026-27 budget. The revenue measures would be taken only to overcome revenue loss on account of relief measures. But the net impact of taxation measures would be zero in 2026-27. READ MORE: PM directs FBR to double revenue collection in FY27 “No new taxes are required to be imposed this year. However, if we provide some relief to taxpayers, the government would need to balance the potential revenue shortfall,” sources said. The next fiscal year’s target would be achieved only through enforcement, but no new taxes would be imposed. This means that the 2026-27 would be a tough year for those under-reporting, concealing their income and assets, or operating out of the tax net, sources said. The Federal Board of Revenue (FBR) will double revenue collection from Rs389 billion in 2025–26 to Rs778 billion in 2026–27 through enforcement measures. The FBR has collected Rs389 billion through enforcement measures during the current fiscal year. This figure includes over Rs50 billion collected from the tobacco sector through ongoing operations against illicit and smuggled cigarettes. Keeping in view the potential to generate additional revenue through recovery measures, the Prime Minister has set an ambitious target of Rs778 billion under the enforcement measures head for the next fiscal year. The FBR has recovered Rs874 billion through enforcement measures during 2024-25. The FBR has achieved the target of Rs389 billion under the enforcement measures head during 2025-26. In 2024-25, FBR was able to recover Rs874 billion through strict enforcement measures against Rs105 billion in 2023-24. This eight-fold increase was driven by specific interventions, structural, and governance changes. The government is trying its level best to lower the cost of tax, which is only possible when all segments of society start paying their due taxes. The FBR is improving its IT systems in a manner that will nudge the people who are not paying due taxes, according to the sources. Copyright Business Recorder, 2026
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