LARKANA: The Sindh-Balochistan Rice Millers and Traders Association (SBRMTA) has expressed its serious concern over key aspects of the Federal Budget 2026-27, warning that repeatedly burdening documented sectors is neither sustainable nor equitable.

In a press statement, General Secretary of the association Asad Tunio acknowledged government’s efforts towards fiscal stability, but pointed out severe structural imbalances. Out of the total Rs18.77 trillion federal budget, the Federal Board of Revenue (FBR) has been tasked with a record tax collection target of Rs15.26 trillion — equivalent to over 81 per cent of entire state spending.

“Out of every Rs100 collected by the FBR, approximately Rs53 will be spent on debt servicing alone, and nearly Rs20 on defence, leaving a mere Rs7 for federal development projects,” Mr Tunio said, adding that this lopsided structure highlights the urgent need for structural reforms.

The association highlighted a stark disparity in the country’s tax compliance profile. In a population of approximately 242 million — with the adult population exceeding 150 million — only seven to eight million individuals are on the Active Taxpayers List (ATL). Furthermore, only about two million taxpayers file returns showing taxable income.

Mr Tunio argued that the current framework unfairly targets compliant taxpayers through repeated notices, audits and enforcement actions, while a massive undocumented sector remains outside the net. He emphasised that the success of tax reforms should be measured by coverage of new taxpayers, rather than the sheer volume of revenue squeezed from existing ones.

It called for shifting of the policy focus from increasing tax rates to broadening the tax base. The association urged the government to utilise integrated databases — including Nadra records, banking transactions, property deeds, vehicle registrations and utility consumption — to bring informal operators into the formal economy.

Published in Dawn, June 20th, 2026