PM directs FBR to double revenue generation from enforcement measures next year

Prime Minister Shahbaz Sharif has directed the Federal Board of Revenue (FBR) to double revenue generation through enforcement measures from Rs 389 billion in 2025-26 to Rs778 billion during 2026-27 to enhance revenue collection and curb tax evasion.

Sources said that FBR Chairman Rashid Langrial chaired a meeting to review new revenue mobilisation measures for the next fiscal year.

The meeting was informed that the FBR has achieved Rs389 billion through enforcement measures during the current fiscal year. This figure includes over Rs50 billion collected from the tobacco sector through ongoing operations against illicit and smuggled cigarettes.

Keeping in view potential to generate additional revenue through recovery measures, the Prime Minister has assigned an ambitious target of Rs 778 billion under the head of enforcement measures during the next fiscal year.

The FBR previously recovered Rs 874 billion through enforcement measures during 2024-25. In 2024-25, FBR was able to recover Rs874 billion from enforcement measures against Rs. 105 billion in 2023-24. This eight-fold increase was driven by specific interventions along with structural and governance changes.

According to sources, the meeting also deliberated a range of proposals aimed at boosting revenue. These include desk audit and analysis of income tax return records to check buying and selling of immovable properties, bank account transactions, foreign travel patterns, and domestic sales tax activities declared in the monthly sales tax returns.

FBR Chairman called for a further tightening of tax enforcement and accelerated efforts to broaden the tax base through intensified compliance measures.

He emphasised that the government’s strategy of digitising the economy, promoting cashless transactions, and strengthening enforcement while maintaining business momentum has begun to deliver tangible and sustainable results.

In addition, participants discussed various options to address issues in the faceless tax system, as well as the auction of non duty paid vehicles to generate approximately Rs50 million.

Senior FBR officials also briefed the meeting on ongoing digital initiatives and efforts to revamp human resources to enable a more system driven audit framework.

Sources further said that the FBR chairman has directed the formation of committees to refine these proposals, which are expected to be incorporated into the upcoming federal budget.

Sources said that the government is planning to present the next fiscal year budget in Parliament in the first week of next month, June 2026.