The Federal Board of Revenue (FBR) has decided not to impose any new taxes despite facing a Rs275 billion shortfall in revenue during the first four months of fiscal year 2025–26. Chairman Rashid Mahmood Langrial announced that instead of emergency measures, the FBR will focus on strengthening compliance, digitalisation, and expanding the tax base.
Speaking at FBR headquarters, Langrial said the tax-to-GDP ratio had risen to 10.33%, the highest in 23 years, up from 8.83% in the previous year. He added that income tax filers increased by 18%, reaching 5.9 million, while taxes paid with returns totaled Rs69 billion.
Langrial emphasized coordination between federal and provincial authorities to achieve the government’s target of raising the tax-to-GDP ratio to 18% within the next four years. “Our focus is on enforcement, not on adding more taxes,” he stated, highlighting the government’s resolve to improve compliance without burdening citizens.
The FBR chief also mentioned operational challenges, including safety concerns during enforcement drives, and confirmed that Rangers are assisting field teams after incidents involving attacks on officers. He revealed that the income tax gap stands at Rs1.7 trillion, with Rs1.2 trillion linked to high-income individuals, stressing that reforms are underway to close this gap through technology and better data integration.