Islamabad: The Federal Board of Revenue (FBR) recorded a 16 per cent increase in tax collection for January, reaching Pkr1.031 trillion, up from Pkr873 billion in the same month last year.
While the growth has raised hopes for double-digit revenue growth in the coming months, the January collection fell short of the Pkr1.047 trillion target, missing it by Rs16 billion. Despite the shortfall, officials say the results indicate a positive outlook for the remainder of FY26, exceeding the average 10-11% growth recorded over the past six months.
An FBR statement highlighted gains in direct taxation, modest improvements in indirect taxes, and overall better performance, crediting the board’s reform-driven revenue mobilisationstrategy for the results.
Between July and January (7MFY26), the FBR collected PKR 7.176 trillion, falling short of the Pkr7.521 trillion target by nearly Pkr345 billion. Still, this represented an 11% increase compared to Pkr6.490 trillion collected during the same period last year.
The shortfall was mainly due to a dip in domestic sales tax collection, the suspension of supertax, and other factors. However, a recent Federal Constitutional Court ruling upholding the super tax is expected to generate Pkr300 billion, potentially bridging the gap.
In FY25, the FBR had also missed its revenue goal, collecting Pkr11.737 trillion against a revised target of Pkr11.900 trillion, marking a 26.19% growth from FY24.
During July-January FY26, the FBR issued Pkr339 billion in refunds, up 7.96% from Pkr314 billion last year. Income tax receipts totaled Pkr3.512 trillion, falling short by Pkr127 billion, but showing an 11% year-on-year increase. Sales tax collections rose 10% to Pkr2.447 trillion, while customs duties grew 6% to Pkr752 billion, though both missed their targets. Federal Excise Duty (FED) exceeded expectations, reaching Pkr465 billion, 15% higher than last year.
January alone saw income tax collections grow 26% year-on-year, reflecting the impact ofstructural reforms, improved enforcement, and resolution of tax disputes. Sales tax collections also rose 12%, supported by a rebound in large-scale manufacturing (LSM).
FBR officials said that digital infrastructure and better enforcement have contributed to greatercompliance, a broader tax base, and increased trust among taxpayers. They remain optimistic that continued growth in LSM will help the FBR meet its revenue targets for the rest of FY26.
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