The federal government has set a tax collection target of Rs 15.264 trillion in the Budget for fiscal year 2026–27. To achieve this target, the government plans to generate an additional Rs 650 billion through new taxation measures, stricter law enforcement, and administrative reforms.
Under the proposed measures, prices of 36 commonly used consumer items are expected to increase. These include milk and dairy products, sweets, jams, jellies, ketchup, spices, cooking oil, ghee, bakery items, shampoo, hair oil, footwear, perfumes, body sprays, plastic household goods, sanitary products, bathroom fittings, suitcases, travel bags, kitchenware, and several other everyday essentials.
The government has also decided to impose a 5% tax on income generated through social media and digital platforms. Earnings from YouTube, Facebook, Instagram, and TikTok will now fall under the tax net.
In addition, higher taxes have been proposed on e-cigarettes, life insurance schemes, and luxury vehicles. Federal Excise Duty (FED) will also be imposed on certain industrial raw materials and other products.
On the other hand, the government has announced relief measures for selected sectors. Income tax rates for salaried individuals have been reduced, and new tax slabs have been introduced. Tax concessions have also been provided to exporters, the real estate sector, and some other industries.
According to official budget documents, the Federal Board of Revenue (FBR) has proposed a total of 39 tax measures, including relief initiatives, reforms, and administrative changes. These measures aim to improve the tax system and broaden the tax base.
The government has further stated that changes have been made to the taxation framework for certain services, imports, and business transactions to increase revenue collection and promote the documentation of the economy.
