ISLAMABAD: The Federal Board of Revenue (FBR) has anticipated that the effective taxation of the digital economy in the budget (2026-27) would increase direct taxes collection during the current fiscal year.
According to the FBR’s revenue forecasting report (2026-27), the increasing share of direct taxes in total revenue is a structurally positive development; however, sustaining this momentum requires deeper tax base broadening and formalisation of economic activity.
Strengthening documentation, improving third-party data integration, and reducing informality will be central to maintaining long-term growth in direct tax collections.
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At the same time, diversifying revenue streams beyond traditional categories can enhance fiscal resilience. This may include more effective taxation of the digital economy, rationalisation of exemptions, and improved efficiency in indirect tax collection.
A diversified tax structure reduces reliance on cyclical sectors and enhances overall revenue stability, FBR added.
Copyright Business Recorder, 2026
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