ISLAMABAD: The federal government has set an ambitious target of Rs. 14 billion in revenue from the Mobile Handset Levy for the fiscal year 2026-27, according to budget documents released alongside the federal budget.
The new target is higher than the Rs. 12 billion budget estimate for FY 2025-26 and exceeds the revised collection estimate of Rs. 13 billion for the outgoing fiscal year. The increase reflects expectations of stronger revenue generation rather than any increase in the levy rate itself.
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Despite reports suggesting a tax hike, the government has not increased the Mobile Handset Levy. Instead, it has projected higher collections based on anticipated growth in mobile device registrations and compliance.
PTA Revenue Projections Also Increased
The government has also raised revenue expectations linked to the Pakistan Telecommunication Authority (PTA).
Receipts from PTA’s 4G and 5G spectrum licences are projected to reach Rs. 27.685 billion in FY 2026-27, compared to the revised estimate of Rs. 24.973 billion and the original budget target of Rs. 22.049 billion for FY 2025-26.
Meanwhile, PTA surplus receipts are expected to amount to Rs. 1.3 billion during the next fiscal year. Although lower than the revised estimate of Rs. 1.64 billion for the current year, the figure remains above the original budget projection of Rs. 1.1 billion.
Non-Tax Revenue to Exceed Rs. 5.3 Trillion
According to budget estimates, Pakistan’s total non-tax revenue is expected to rise to Rs. 5.336 trillion in FY 2026-27, up from the revised estimate of Rs. 5.093 trillion for FY 2025-26.
A significant portion of this revenue is expected to come from the petroleum levy, for which the government has set a target of Rs. 1.677 trillion, compared to the revised collection estimate of Rs. 1.498 trillion in the outgoing fiscal year.
The budget also includes Rs. 1.035 trillion under grants and receipts from provinces under Article 164 of the Constitution, a category that had no allocation in either the budget estimates or revised figures for FY 2025-26.
Climate Levy and FBR Revenue Targets Raised
Revenue from the Climate Support Levy is projected at Rs. 50 billion for FY 2026-27, slightly above the revised estimate of Rs. 48 billion for the current fiscal year.
On the taxation front, the Federal Board of Revenue (FBR) has been assigned a collection target of Rs. 15.264 trillion, significantly higher than the revised estimate of Rs. 12.983 trillion for FY 2025-26.
Overall, total federal revenue receipts are projected to increase to Rs. 20.6 trillion in FY 2026-27, compared to Rs. 18.076 trillion in the current fiscal year, highlighting the government’s strategy of boosting both tax and non-tax revenues to meet its fiscal objectives.
