Rs 14.3 trillion tax goal is impossible to reach for fiscal year 2025-26, the FBR (Federal Board of Revenue) stated after the IMF (International Monetary Fund) gave its permission to reduce Pakistan’s tax revenue proposed target by up to Rs. 250 billion for the upcoming year. It is because of low inflation and a decrease in the revised economic growth outlook.
The tax collection target is again revised by the FBR and is now estimated to be fixed at Rs. 14,100 trillion for FY 2025-26, slightly lower than the earlier proposed number of Rs. 14,307 trillion for FY 2025-26. Final settlement on tax targets, FY2025-26’s economic agenda and the next federal budget between the IMF mission and Pakistan’s Economic team.
According to sources, the Pakistan economic team has shown concerns and argued that because inflation and GDP growth are lower than earlier, the last tax target also failed. The government, in response, directed to control federal spending and increase revenue through higher non-tax income.
Moreover, the upcoming budget is forecast to include special relief for low-income workers. Discussions are still under consideration to finalize an income tax exemption for individuals that earn up to Rs. 1 million yearly. However, those incomes higher than this threshold may face new tax measures to discuss revenue shortfalls.
Sources also suggest that the important negotiation to finalize last terms for the upcoming fiscal year for 2025-26 budgets between the IMF (International Monetary Fund) and the Pakistani economic team is expected to be schedule Today.
