Govt unlikely to impose new taxes in 2026-27 budget, weighs relief for salaried, corporate sectors: report

The federal government is unlikely to introduce new taxes in the 2026-27 federal budget and instead plans to rely on enforcement and administrative measures to meet next year’s revenue targets, Business Recorder reported, citing sources.

Officials said the Federal Board of Revenue is expected to raise up to ₨780 billion through enforcement and recovery measures in the next fiscal year after Prime Minister Shehbaz Sharif directed authorities to double enforcement-related collections for 2026-27.

Sources added that the next fiscal year would involve stricter enforcement against under-reporting, concealment of income and assets, and businesses operating outside the tax net.

The government is also considering relief measures for the salaried class, corporate sector and taxpayers subject to Super Tax, while using alternative revenue-generation steps to offset any resulting revenue shortfall.

Sources said the overall impact of taxation measures in the upcoming budget would remain neutral, with any revenue measures introduced aimed only at compensating for relief provided to taxpayers.

The FBR has already collected ₨389 billion through enforcement measures during the current fiscal year, including more than ₨50 billion recovered from operations against illicit and smuggled cigarettes in the tobacco sector.

During fiscal year 2024-25, the FBR recovered ₨874 billion through enforcement measures compared to ₨105 billion in 2023-24, which officials attributed to structural reforms, governance changes and targeted interventions.

Authorities said the government was also working to lower the overall cost of taxation by expanding the tax base and improving compliance.

Sources added that the FBR was upgrading its IT systems to identify individuals and businesses not paying due taxes and encourage greater documentation of the economy.