FBR Targets Rs4.735 Trillion in Sales Tax Collection

The Federal Board of Revenue (FBR) has projected Rs4.735 trillion in sales tax collections for FY2026-27, anticipating that stronger large-scale manufacturing (LSM), increased consumer demand, and higher trade volumes will contribute to improved tax revenues during the fiscal year.

According to the FBR Revenue Forecasting Report 2026-27, sales tax receipts are expected to increase by 9.3% compared to the previous fiscal year. The report attributes this projected growth to expected improvements in industrial output, consumption levels, and import activity. Owing to its broad tax base, sales tax continues to serve as one of the government's most significant revenue sources, although its performance remains closely linked to overall economic conditions.

The FBR has also set a direct tax collection target of Rs7.366 trillion for FY2026-27, representing a required growth of 14.5% over the preceding fiscal year. The report states that this projection is supported by the historically strong performance of income-based taxes, alongside anticipated growth in GDP, corporate earnings, and the formalisation of economic activity.

The report further notes that the direct tax base is expected to expand through enhanced tax compliance initiatives, strengthened enforcement mechanisms, and broader documentation of the economy.

For customs duties, the FBR has projected revenue of Rs1.496 trillion, based on expected growth in imports, prevailing exchange rate trends, and the existing customs tariff framework. However, the report cautions that customs revenue remains sensitive to global economic developments, international trade policies, and Pakistan’s balance-of-payments position.

In addition, the FBR has estimated Federal Excise Duty (FED) collections at Rs902 billion for FY2026-27. According to the report, the achievement of this target will largely depend on production levels in excisable industries and the continuation of existing fiscal and taxation policies throughout the year.