FBR sets Rs14.1 trillion tax target

Budget session for the approval of Finance Bill 2025-26 commenced on Tuesday as Speaker National Assembly Sardar Ayaz Sadiq presided over the special session.

The government has officially released the Budget 2025–26 documents, setting the total budget volume at Rs17553 billion for the next fiscal year. The Federal Board of Revenue (FBR) has been given a challenging tax collection target of Rs14131 billion. According to the budget papers, direct taxes are expected to bring in Rs6902 billion. From this, Rs6,811 billion will come specifically from income tax. On the other hand, the indirect tax target stands at Rs7229 billion. This includes Rs1588 billion from customs duty, Rs4753 billion from sales tax, and Rs888 billion from federal excise duty.

In terms of non-tax revenue, the government aims to collect Rs2147 billion. Within this, the petroleum levy is estimated to generate Rs1468 billion. Other expected collections include Rs50 billion from the Natural Gas Development Surcharge, Rs2.4 billion from the Gas Infrastructure Development Cess, and Rs5 billion from the LPG petroleum levy. Debt servicing and interest payments will take a major portion of the budget, with Rs8207 billion set aside for this purpose. Additionally, Rs1055 billion has been allocated for pensions of retired government employees.

For operational expenses, Rs971 billion will be spent on non-development budgets for federal ministries and departments. The budget outlines the government’s strategy to balance income and expenses, meet loan obligations, and continue functioning despite financial pressures. These figures reflect a push to increase tax revenue and manage expenditures carefully in the face of ongoing economic challenges.