Islamabad – In an effort to strengthen fiscal discipline and boost tax collection, the Government of Pakistan has unveiled its Federal Budget 2025–26, setting a tax revenue target of Rs. 14.13 trillion.

Tax Revenue Breakdown:

🔹 Direct Taxes: Rs. 6.9 trillion, covering income tax, corporate tax, and capital value tax.
🔹 Indirect Taxes: Rs. 7.23 trillion, including sales tax, customs duties, and federal excise duties.
🔹 Non-Tax Revenue: Rs. 5.14 trillion, comprising levies, fees, profits from state enterprises, and petroleum levies.

Significance of the Tax Target

The government aims to reduce reliance on borrowing, improve tax compliance, and expand the tax base, ensuring higher revenue collection without burdening businesses and consumers unnecessarily. The Federal Board of Revenue (FBR) is tasked with achieving this goal through advanced digital tax mechanisms, AI-driven audits, and streamlined tax procedures.

Experts believe that effective enforcement and reduction in tax evasion will be crucial in meeting this ambitious target. With fiscal deficit trimmed to 2.32% of GDP, policymakers hope this revenue strategy will drive economic recovery and sustainable growth in Pakistan.