ISLAMABAD: The Ministry of Finance and the Federal Board of Revenue (FBR) are preparing to shift the burden of their own administrative incompetence onto the country’s poorest citizens, with the new budget for 2026-27 set to introduce crippling tax measures at the behest of the International Monetary Fund (IMF).
According to official sources, the government has assured the global lender of additional tax measures worth a staggering Rs 860 billion. In a major policy U-turn, authorities have also decided to halt subsidies on petrol and diesel under direct pressure from the IMF, triggering fears that energy and fuel prices in the country will skyrocket to new, unaffordable heights.
The size of the upcoming federal budget is likely to exceed Rs 17,000 billion, placing an unprecedented strain on an already inflation-weary population. The IMF has further set a daunting target of collecting an additional Rs 2,000 billion through the General Sales Tax (GST).
Rs 7,000 Billion in Just Six Months
Sources revealed that the tax collection target has been set at Rs 7,000 billion for the first six months of the next fiscal year alone, culminating in a massive Rs 15,267 billion target by June 2027.
In a detailed breakdown of the new impositions, the Ministry of Finance and the FBR plan to impose an additional burden of Rs 430 billion directly on the public. This includes Rs 215 billion in new taxes, while the remaining Rs 215 billion will be forcibly extracted through enhanced audit scrutiny and “strict supervision.” To compound the misery, the four provinces are also expected to levy new taxes totaling Rs 430 billion.
Petroleum Levy to Drain Pockets
The government has also decided to jack up the petroleum levy, planning to collect Rs 1,727 billion from this head alone—a massive Rs 260 billion more than the current fiscal year.
“In order to provide relief to one sector, the burden will now be placed on other sectors,” an official source admitted, acknowledging the regressive nature of the coming measures.
Glaring Failure on Agricultural Income
Despite repeated promises to the IMF, the government has notably failed to collect any significant taxes on agricultural income. Official data shows that while the agricultural sector contributes approximately 25 percent to the national economy, its tax collection remains a paltry 0.3 percent—a glaring loophole that remains untouched even as the poor are squeezed.
