ISLAMABAD: The government is considering aggressive enforcement and administrative measures worth around Rs780 billion in the upcoming federal budget for FY2026-27 instead of introducing new taxes, offering possible relief to taxpayers and businesses.
According to sources, the government is unlikely to impose any fresh taxes in the next fiscal year and will instead focus on expanding compliance, improving enforcement, and targeting under-reported income and concealed assets to meet its revenue goals.
Officials said that if relief is granted to the salaried class, corporate sector, and taxpayers affected by Super Tax, the resulting revenue shortfall would be compensated through alternate enforcement-based measures rather than additional taxation.
The Federal Board of Revenue is expected to significantly increase revenue collection through enforcement measures from Rs389 billion in FY2025-26 to nearly Rs778 billion in FY2026-27.
Sources revealed that the government believes there is substantial room to improve tax recovery through stricter compliance actions, better documentation of the economy, and enhanced monitoring systems. As a result, authorities are preparing for a tougher crackdown on tax evasion, under-reporting, and non-filers during the next fiscal year.
Officials maintained that the overall impact of taxation measures in the upcoming budget would remain neutral, meaning no major new tax burden would be placed on compliant taxpayers.
The FBR has already collected Rs389 billion through enforcement measures during the current fiscal year, including more than Rs50 billion recovered from operations against illicit and smuggled cigarettes in the tobacco sector.
In comparison, the FBR reportedly recovered Rs874 billion through enforcement actions during FY2024-25, a sharp increase from Rs105 billion in FY2023-24. Authorities attributed this rise to structural reforms, governance improvements, and targeted enforcement initiatives.
Sources added that the government is attempting to reduce the overall cost of taxation by broadening the tax base and ensuring all sectors contribute their fair share of taxes. The FBR is also upgrading its IT infrastructure and digital monitoring systems to identify individuals and businesses operating outside the tax net.
The upcoming FY2026-27 budget is expected to focus heavily on documentation of the economy, digital tax enforcement, and recovery mechanisms rather than introducing new taxation measures.
