Islamabad, June 10, 2025 – The federal government has officially revised downward the tax collection target for the Federal Board of Revenue (FBR) for the current fiscal year 2024-25, lowering it to Rs11.90 trillion from the earlier target of Rs12.97 trillion. This downward revision reflects the challenges faced in meeting revenue goals amid ongoing economic pressures.
Despite the revision for the ongoing fiscal year, the government has set an ambitious collection target of Rs14.131 trillion for the upcoming fiscal year 2025-26, signaling renewed efforts to boost revenue generation through enhanced enforcement and policy measures. The details were outlined in the budget documents for 2025-26, which provide a breakdown of both direct and indirect tax expectations.
In terms of direct taxes, the revised collection for FY2024-25 stands at Rs5.826 trillion. For FY2025-26, the target for direct taxes has been raised to Rs6.902 trillion. Notably, income tax remains the major contributor, with a projected collection target of Rs6.811 trillion. Additionally, the government expects to generate Rs17.19 billion from Capital Value Tax, Rs25.74 billion from the Workers Welfare Fund, and Rs47.825 billion from the Workers Profit Participation Fund during FY2025-26.
On the indirect tax side, the collection target for FY2024-25 has been lowered to Rs6.074 trillion, down from the earlier projection of Rs7.458 trillion. For FY2025-26, however, a higher indirect tax target of Rs7.229 trillion has been set. This includes Rs1.588 trillion from customs duties, Rs4.753 trillion from sales tax, and Rs888 billion from federal excise duty.
The overall shift in collection targets reflects a strategic recalibration based on current economic realities, past performance, and future aspirations. While the lower target for FY2024-25 points to collection challenges, the raised goal for FY2025-26 indicates a determined approach to improve compliance and strengthen the national revenue base.
As FBR prepares to meet these enhanced targets, much will depend on administrative reforms, digitalization, and taxpayer facilitation to ensure effective collection and fiscal sustainability.