The Federal Board of Revenue reported a sharp rise in tax collection in January 2026, signalling improved momentum in revenue generation during the ongoing fiscal year.
The FBR collected Rs 1,015 billion in January 2026, a notable increase from Rs 873 billion in the same month last year. Officials said the monthly performance reflected steady recovery across major tax heads.
During the first seven months of the fiscal year, total tax receipts reached Rs 7,176 billion, compared with Rs 6,490 billion during the same period last year. This marks a solid year-on-year improvement.
Over the past six months, average revenue growth has remained between 10% and 11%, according to FBR data.
Sales tax collection showed consistent gains. The FBR collected Rs 360 billion in sales tax in January, up 12% from Rs 322 billion a year earlier.
Overall revenue during the period increased from Rs 381 billion to Rs 483 billion, reflecting stronger enforcement and broader compliance.
FBR’s Shortfall in First Half of Fiscal Year
Despite January’s strong performance, the FBR earlier faced a shortfall during the first half of the fiscal year. From July to December, the tax authority missed its target by Rs 335 billion.
The six-month target stood at Rs 6,490 billion, while actual collection reached Rs 6,155 billion. In December 2025 alone, the shortfall amounted to nearly Rs 25 billion, sources said.
During the same July–December period, the FBR issued Rs 292 billion in tax refunds.
Breakdown of FBR’s Collections 2026
Data for the first half of the fiscal year shows:
- Income tax: Over Rs 3,026 billion
- Sales tax: Rs 2,086 billion
- Federal excise duty: Rs 400 billion
- Customs duty: More than Rs 642 billion
Tax compliance also improved. Income tax return filings rose sharply during the July–December period. More than 7 million returns were filed this fiscal year, up from 5.2 million in the same period last year.
Officials see the increase as a positive sign, despite the earlier revenue gap. Separately, the FBR recently suspended six officials for unauthorised absence from monitoring duties at sugar mills. The officials had been deployed under Section 40B of the Sales Tax Act, 1990, to oversee sugar production.
