FBR tasked to double revenue collection through stricter enforcement

Islamabad: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to double revenue collection generated through enforcement measures, setting a target of PKR 778 billion for 2026–27 compared to PKR 389 billion in the current fiscal year.

Sources said the directive was issued during a review meeting on revenue mobilisation chaired by FBR Chairman Rashid Langrial, where future enforcement strategy and compliance measures were discussed.

The Prime Minister called for stricter enforcement through modern, automated monitoring systems, particularly targeting high-revenue sectors to curb tax evasion and expand collections.

Officials briefed the meeting that PKR 389 billion has already been collected through enforcement in 2025–26, including over PKR 50 billion from anti-smuggling operations in the tobacco sector. They added that enforcement-led recovery stood at PKR 874 billion in 2024–25, compared to PKR 105 billion in 2023–24, reflecting a significant increase driven by structural and governance reforms.

The meeting was also informed that proposed measures for the next fiscal year include desk audits of income tax returns, analysis of property transactions, bank activity, foreign travel patterns, and sales tax records to identify non-compliance.

The FBR chairman stressed the need to further tighten enforcement and accelerate efforts to broaden the tax base through enhanced compliance. He noted that digitisation, cashless transactions, and strengthened monitoring were beginning to yield measurable results.

Participants also discussed improvements to the faceless tax system, auction of non-duty-paid vehicles expected to generate around PKR 50 million, and ongoing digital reforms aimed at strengthening audit mechanisms.

Officials said committees will be formed to refine the proposals, which are expected to be included in the upcoming federal budget.