ISLAMABAD: The federal government has set an ambitious tax collection target of Rs15.264 trillion for the Federal Board of Revenue (FBR) in the Budget 2026-27, outlining a comprehensive revenue strategy aimed at strengthening public finances and reducing the fiscal deficit.
According to budget documents, the government expects to collect Rs7.613 trillion through income tax during the next fiscal year. The figure represents a significant share of overall revenue projections and reflects the government’s continued focus on expanding the tax base and improving compliance.
The budget also projects total indirect tax revenues of Rs7.651 trillion, generated through customs duties, sales tax, and federal excise duty. Officials believe these taxes will play a crucial role in meeting the overall revenue target and supporting fiscal stability.
Under the proposed framework, customs duty collections have been estimated at Rs1.651 trillion. Meanwhile, sales tax is expected to remain the largest source among indirect taxes, with projected collections of Rs4.972 trillion during the fiscal year.
In addition, the government has set a target of Rs1.073 trillion from the Federal Excise Duty (FED), further contributing to the overall revenue plan outlined in the budget.
The government says the new tax targets are designed to increase revenue generation, control the budget deficit, and place the economy on a more sustainable footing. Authorities have also reiterated their commitment to strengthening documentation of the economy, improving tax administration, and enhancing the efficiency of the tax system.
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