The federal government is preparing to significantly increase next fiscal year’s tax collection target to Rs. 14.3 trillion, representing a 16 percent jump from the current year’s revised goal of Rs. 12.3 trillion.

This ambitious target, which equals 11 percent of projected GDP for FY26, will likely include at least Rs. 500 billion in new tax measures. These come on top of the Rs. 1.3 trillion has already been imposed this year, particularly affecting salaried individuals, according to Express Tribune.

The proposed Rs. 14.3 trillion figure exceeds the Federal Board of Revenue’s internal projections and awaits approval from the International Monetary Fund during its budget review visit beginning May 14. Finance Minister is expected to present the budget in early June.

Meanwhile, the Overseas Investors Chamber of Commerce and Industry has submitted several proposals, including withdrawing Rs. 5,000 notes to reduce the cash economy, exempting low-income earners from taxes, and providing relief to compliant taxpayers. The business group also advocates for gradually reducing corporate tax to 25 percent, cutting the super tax from 10 to 6 percent, and restoring zero-rating for export-linked sales.

However, most OICCI demands face resistance due to IMF conditions. The government has already raised the petroleum levy to Rs. 78 per liter to boost tax revenue statistics, though significant improvement remains uncertain.