The federal government will impose no new taxes in the upcoming 2026-27 budget, relying instead on stricter enforcement to meet its revenue targets.
As per the media report, the Federal Board of Revenue (FBR) plans to double its enforcement-based collections from Rs389 billion this fiscal year to Rs778 billion in 2026-27.
Sources revealed that the government intends to meet the revenue target solely through administrative and enforcement measures worth approximately Rs780 billion.
The FBR collected Rs389 billion through enforcement measures during the current fiscal year 2025-26, including over Rs50 billion recovered from the tobacco sector alone.
Operations against illicit and smuggled cigarettes contributed significantly to that Rs50 billion figure, forming a key part of the current enforcement strategy from FBR.
Relief for Taxpayers
The upcoming budget 2026-27 is expected to offer relief to salaried workers, the corporate sector, and taxpayers currently subject to the Super Tax on higher incomes.
Any revenue lost through these relief measures will be offset by alternative revenue generation steps, ensuring the net taxation impact remains zero in 2026-27.
Sources confirmed that no additional tax burden will be placed on citizens, and the balancing measures of the federal government will address any resulting shortfall entirely.
Enforcement Drive
Prime Minister Shehbaz Sharif has set an ambitious Rs778 billion enforcement target for next year, based on the revenue potential demonstrated during the current fiscal year.
In 2024-25, the FBR recovered Rs874 billion through strict enforcement measures, a sharp rise from just Rs105 billion collected through enforcement in 2023-24.
That eight-fold increase over one year was attributed to specific operational interventions alongside structural and governance reforms introduced within the tax authority.
Crackdown on Non-Compliance
Officials warned that 2026-27 will prove a difficult year for individuals under-reporting income, concealing assets, or operating entirely outside the formal tax system.
The FBR is currently upgrading its information technology systems to identify and prompt citizens who are not paying their legally required tax contributions.
The government has stated its goal is to lower the overall cost of taxation, which it says depends on all segments of society paying due taxes.
