FY27 tax collection target: Langrial expresses optimism
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial said that we are hopeful that by the end of the next fiscal year, the FBR will be able to increase its revenue collection to around Rs 13 trillion through natural economic growth. We expect approximately Rs 1.5 trillion to come from autonomous growth. To generate the remaining amount needed to meet the target, we will undertake a range of enforcement measures and administrative actions.
He said that two years ago, we were collecting around USD32 billion in taxes, but within just two years we increased that figure to USD46 billion. Previously, it had taken 13 years to achieve a USD14 billion increase in tax revenues. In 2011, we were collecting only USD18 billion in taxes, and by 2024 that amount had reached USD32 billion.
In this budget, the advance tax on exporters has been abolished. In addition, the super tax has also been removed for exporters, whereas the same relief has not been extended to local manufacturers. This is essentially a budget for exporters.
This year, we have paid more than Rs80 billion in additional tax refunds to exporters compared to last year, which shows that the government is giving priority to the export sector, Langrial said. He said I have data on around 9,000 individuals who possess substantial wealth but pay only a negligible amount in taxes.
Langrial said that as a result of our enforcement actions, tax evasion worth Rs300 billion in the textile sector has been curtailed, while we have collected Rs40 billion from the tobacco sector. The provinces and the federal government have reached a sound agreement. If the federation falls short of its tax collection target, the amount that provinces are expected to transfer to the federal government—close to Rs1 trillion—will also be reduced accordingly.
He further said that super tax-related decision generated Rs200 billion in revenue for us, while other measures contributed an additional Rs50 to Rs60 billion.
He said FBR also filed many unnecessary cases in the past because commissioners faced action if they chose not to file appeals. We have now changed that system. The decision on whether to pursue an appeal will be taken by a board that will also include a retired High Court judge.
Langrial further said there were technical issues with the Tajir Dost Scheme, but the demand for a new scheme came from traders themselves. It will also help address complaints of harassment by the FBR. I believe traders will compete with one another to become part of this scheme.
Last year, stricter action by security forces in Balochistan reduced oil smuggling. As a result, legal imports of petroleum products increased, which also contributed to higher petroleum levy collections, Langrial said.
Copyright Business Recorder, 2026