ISLAMABAD: The federal government has proposed a tax collection target of Rs15,000 billion for the Federal Board of Revenue (FBR) in the fiscal year 2026-27, according to sources. The proposal forms part of broader efforts to strengthen revenue collection, expand the tax base, and support fiscal stability.
Revenue Measures and Climate Levy Under Review
Sources said the government has also decided to increase the climate levy in the upcoming budget. In addition, authorities are considering measures to generate an extra Rs800 billion in tax revenue during the next fiscal year.
The government is reviewing several enforcement initiatives to improve tax collection and enhance receivables. These measures aim to increase compliance and bring more individuals and businesses into the tax net. Meanwhile, policymakers are also examining options to reduce government subsidies as part of efforts to manage public finances more effectively.
Relief Proposed for Salaried Class and Key Sectors
At the same time, the government plans to provide tax relief worth Rs50 billion to salaried individuals. Various proposals are also under consideration to support exporters, the property sector, and investors.
According to sources, the government may reduce property taxes on the sale and purchase of real estate. A proposal to withdraw the one percent advance income tax on exporters is also being reviewed. Furthermore, a special relief package is under consideration to encourage investment and stimulate economic activity.
The information technology sector is expected to retain its existing tax incentives. Officials are also reviewing a proposal to continue the 0.25 percent tax regime for IT companies and software houses.
The proposed measures reflect the government’s strategy to boost revenue collection while offering targeted relief to key sectors and taxpayers in the Budget 2026-27.
