ISLAMABAD: Direct taxes are projected to constitute approximately 50 percent of total tax collection during 2026–27, according to the revenue forecasting report of the Federal Board of Revenue (FBR).
The report projected that an important structural development over the past few years is the evolving composition of tax revenues.
Direct taxes are projected to constitute approximately 50 percent of total revenue in FY2026–27, maintaining their dominant share. This represents a desirable shift toward a more balanced and equitable tax structure, characterized by greater reliance on income-based taxation relative to indirect levies.
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From a fiscal policy perspective, a higher proportion of direct taxes is generally associated with improved progressively, enhanced fairness, and reduced vulnerability to consumption and trade volatility.
Moreover, direct taxes tend to be more stable over the medium term when supported by documentation and compliance reforms.
Overall, the projected revenue growth and evolving tax composition indicate not only quantitative expansion but also qualitative improvement in the structure of revenue mobilization. This dual trend strengthens fiscal sustainability and supports the broader objective of building a more resilient and equitable taxation framework, the report added.
Copyright Business Recorder, 2026