Overview
- Official data show federal tax and levy receipts exceeded Rs13 trillion in FY2025, equal to about 11.3% of GDP.
- Adviser to the finance minister Khurram Shehzad said combined provincial taxes totaled Rs979 billion, roughly 0.85% of GDP, versus an expectation near 3%.
- Shehzad said current trends suggest the revenue goal of 15% of GDP by June 2028 remains achievable if reforms continue.
- He cited low yields from provincial tax bases, including Rs650 billion from sales tax on services (about 2.2% of an estimated Rs29 trillion base) and Rs8.4 billion from agricultural income tax (about 0.2% yield).
- He noted weak property taxation at around 0.08% of GDP compared with regional peers and called for coordinated federal–provincial reforms to lift collections.