ISLAMABAD: The Federal Board of Revenue (FBR) has developed a comprehensive artificial intelligence (AI)-driven strategy to achieve its ambitious Rs. 15.264 trillion tax collection target for the fiscal year 2026-27, despite introducing significant tax relief measures for key sectors of the economy.
FBR Chairman Rashid Mahmood Langrial said the tax authority is adopting advanced digital technologies to improve enforcement, increase compliance, and streamline tax administration. As part of this initiative, the FBR will introduce a Digital Algorithmic Settlement Mechanism to resolve tax disputes more efficiently and transparently.
The chairman stated that the government has extended tax relief to several sectors, including the salaried class, exporters, and the real estate sector, while also rationalizing and abolishing Super Tax for certain businesses and introducing a fixed tax scheme for retailers. Despite these concessions, the FBR remains confident of meeting its revenue target through improved compliance and technology-based enforcement.
Langrial further revealed that the FBR will conduct monthly General Sales Tax (GST) audits, a move expected to significantly improve revenue collection during the upcoming fiscal year.
He explained that key macroeconomic indicators—including GDP growth, Large-Scale Manufacturing (LSM) performance, and inflation measured through the Consumer Price Index (CPI)—will play an important role in achieving the tax collection target.
According to the FBR chairman, the government had informed both the International Monetary Fund (IMF) and members of Parliament that a combination of 26 revenue-enhancing measures, including stronger enforcement, improved tax compliance, policy reforms, and selective tax rate adjustments, is expected to generate an additional Rs. 1.02 trillion in revenue during FY2026-27.
The chairman also highlighted that the FBR has revised its tax collection target for the outgoing fiscal year ending June 2026 to Rs. 12.983 trillion. Initially, Parliament had approved a target of Rs. 14.130 trillion, which was later reduced to Rs. 13.979 trillion before being revised downward again to Rs. 12.983 trillion. Under Pakistan’s agreement with the IMF, the tax collection benchmark for FY2025-26 had been set at Rs. 12.961 trillion.
Responding to concerns over the sharp increase in next year’s tax target following the reduced collection estimate for the current fiscal year, Langrial said the government deliberately reduced the tax burden on selected sectors under the IMF-supported reform programme. He emphasized that enhanced enforcement, wider tax compliance, and AI-powered tax administration would enable the FBR to successfully achieve the Rs. 15.264 trillion revenue target in FY2026-27.
