ISLAMABAD: The government has shared the exact revenue impact of taxation measures with the International Monetary Fund (IMF) for the budget 2026-27, anticipating that over two dozen tax measures will fetch an additional Rs1,020 billion in the Federal Board of Revenue’s (FBR) coffers.
The FBR’s envisaged target has been fixed at Rs15,264 billion for the fiscal year 2026-27 against the revised target of Rs12,983 billion for the outgoing fiscal year 2025-26 ending on June 30, 2026. With nominal growth of 12.2 percent (including real GDP growth of 4 percent and CPI-based inflation of 8.2 percent), total tax revenues will add to Rs14,567 billion. In order to materialise Rs15,264 billion, the FBR requires almost Rs700 billion to touch the desired tax collection target in next fiscal.
According to a detailed chart shared by the government with the IMF and parliamentarians, there are a total of 26 taxation measures, including enforcement, administrative and hike in tax rate, having a total revenue impact of Rs1,020 billion in the fiscal year 2026-27, including Taxpayer Services and Facilitation Enhancement Programme, which will fetch an additional Rs144 billion in the next fiscal year starting from July 1, 2026.
The expansion of the Third Schedule of Sales Tax Act, where the retail price of certain items will be written and tax will be charged at the manufacturer level, will bring additional revenues of Rs91 billion in the next fiscal year.
The Faceless Auto Tax Office: Algorithmic Settlement Rams Offs will bring additional revenues of Rs85 billion in the next fiscal year. The production data integration and real-time sectoral verification framework will yield additional revenues of Rs85 billion.
The retail formalisation and Point of Sale (POS) integration scheme will bring additional revenues of Rs82 billion in the fiscal year 2026-27.
The supply chain digitalisation policy is estimated to bring additional revenues of Rs75 billion, Structured Alternate Dispute Resolution (ADR) led revenue realisation will bring Rs45 billion revenue impact, conditionality framework for High-Value Economic Participation will have a revenue impact of Rs43 billion and introducing Sales Tax on Industrial Imports (including additional 3 percent on misuse of industrial imports) tax arbitrage will bring Rs40 billion additional revenues.
The windfall tax on refineries at a rate of 20 percent will yield additional revenues of Rs36 billion. Increasing the minimum turnover tax for certain classes of distributors from 0.25 percent to 0.5 percent will yield an additional Rs35 billion, risk-based Customs Valuation and Intelligence-led Border Compliance Framework will bring an additional Rs33 billion in the next fiscal year.
The Federal Excise Duty (FED) on POL products that are used for adulteration but not chargeable to PDL at Rs80 per litre (white spirit, solvents) will yield additional revenues of Rs29 billion. Applying Withholding Taxes on purchases from unregistered entities to individuals and AOPs will bring Rs28 billion, and recalibrating WHT on different categories of services will have a revenue impact of Rs27 billion.
The graduated penalty rationalisation framework for systematic filing non-compliance will bring additional tax revenues of Rs26 billion, expiring sales and income tax exemptions in tribal areas on imports Rs23 billion, and Special Excise Duty on luxury items and high-end Electric Vehicles will bring additional revenues of Rs20 billion.
The increasing Withholding Tax on Sale of Government Securities will bring additional revenues of Rs11 billion, subjecting steel industry and trading houses to minimum tax will yield a revenue impact of Rs10 billion, under clause 46A to impose minimum tax on steel sector to introduce parity with other sectors will bring additional revenues of Rs5 billion, under clause 57 for removing exemption from withholding tax on supplies by trading houses will bring additional revenues of Rs5 billion.
Some other policy measures are estimated to bring Rs5 billion, tax rates on capital gains on shares of non-filers will yield Rs4 billion, toll manufacturing for informal customers for recovering due taxes will bring Rs2 billion additional revenues in the fiscal year 2026-27.
This document did not share the cost of relief measures announced in the budget; however, earlier, the government had informed the parliamentary panels that it provided tax relief of Rs360 billion to various sectors, including the salaried class, exporters, real estate, abolishing and reducing rates of Super Tax in the budget 2026-27. If relief measures are excluded, then the net revenue impact of over two dozen measures will stand at Rs675 billion in the budget for 2026-27.
