The federal government has recommended assigning a tax collection target of Rs15,000 billion to the Federal Board of Revenue (FBR) for fiscal year 2026-27. According to sources, the federal government also decided to enhance the percentage of the climate levy in the Budget 2026-27. Measures being taken to impose additional taxes amounting to Rs800 billion for next year’s budget and to expand the tax net.

A proposal to collect additional revenue through enforcement measures is also on the table. The federal government decided to take measures to enhance receivables. The government is also reviewing cutting the subsidies in next fiscal year’s budget, while concessions will be granted to salaried persons. Various proposals were also under review to grant tax exemption to exporters and the property sector. The tax concessions and other facilities to the IT sector will remain intact.

The government will grant tax relief of Rs 50 billion to the salaried class. The proposal to maintain the tax regime of 0.25 percent on IT companies and software houses will also be under review. Property tax on sale and purchase will be decreased, one percent advance income tax on exporters will also be withdrawn. A special relief package will also be introduced to enhance investment in the country.

Credit: Independent News Pakistan (INP)