Govt Sets Rs. 14.2 Trillion Tax Collection Target for FY25

The federal government has set an audacious Rs. 14.2 trillion tax collection target for the Revenue Division in the budget 2025-26, sources informed ProPakistani. This target is slightly lower than the earlier proposed figure of Rs. 14,307 billion. Finance Minister Muhammad Aurangzeb is set to unveil the federal budget for fiscal year 2025-26 today. The total budget size is expected to be Rs. 17.6 trillion, slightly down from Rs. 18.7 trillion for the previous fiscal year. The International Monetary Fund has repeatedly warned the government that it is liable to miss out on the outgoing fiscal year’s revenue target due to lower-than-expected autonomous growth amid subdued inflation. With this in perspective, similar trends in FY26 could make achieving the new tax target a little out of reach. It bears mentioning that the federal government gave tax exemptions worth Rs. 5.84 trillion to various sectors during the ongoing fiscal year, with the largest share in the form of sales tax relief. Income tax exemptions amounted to more than Rs. 800 billion, while customs duty exemptions stood at over Rs. 785 billion. These exemptions could prevent full revenue collection next fiscal year.