ISLAMABAD: The federal government has officially approved new tax measures worth PKR 400 to 500 billion for the upcoming fiscal year, sources reliable to the matter disclosed. Scheduled to take effect on July 1, 2026, these strategic financial measures aim to document the national economy, curb tax evasion, and significantly boost revenue collection.
Digital Banking System Mandated for Filers and Non-Filers
In a bid to enhance financial surveillance, the government has decided to introduce a robust digital banking system tailored for both tax filers and non-filers. Under this initiative, the Federal Board of Revenue (FBR) will be granted real-time, online access to the central databases of commercial banks.
According to official estimates, leveraging this banking data is projected to generate an additional PKR 100 billion in revenue. Concurrently, the Prime Minister has issued strict directives to the FBR to initiate a crackdown against tax evaders.
Super Tax to Remain; CVT on Foreign Assets Abolished
Sources indicate that the Super Tax will be retained in the upcoming budget, though proposals for its phased elimination remain under consideration. Furthermore, while the tax on inter-corporate dividends is set to continue, consensus has been reached to abolish the Capital Value Tax (CVT) on foreign assets to incentivize foreign inflows.
Transition to Digital Invoicing: Manual Tax Receipts Phased Out
To systematically target retail leakages, the government is executing a nationwide rollout of the Digital Invoicing System.
Effective July 1, 2026, only digitally generated invoices will be legally recognized.
Manual sales tax invoices will be entirely abolished.
The transition to digital invoicing is estimated to yield an additional PKR 100 billion in federal revenue.
Third Schedule Expansion: FMCGs to Face Retail-Price Taxation
The government has agreed to include Fast-Moving Consumer Goods (FMCGs) into the Third Schedule of the Sales Tax Act. Consequently, an additional 20 to 25 items will now be taxed based on their printed retail prices. The expanded list includes essential commodities such as:
Milk and dairy products
Cooking oil
Ketchup and condiments
This expansion of the Third Schedule is forecast to bring in another PKR 100 billion to the national exchequer.
New Electricity Bill-Based Tax Scheme for Retailers
A new simplified tax regime is being introduced for small and medium-sized retailers. Businesses with an annual turnover of up to PKR 250 million will face a tax structure assessed directly through their monthly commercial electricity bills. However, sources clarified that Tier-1 retailers will be excluded from this specific scheme and will continue to operate under the standard tax protocols.