The Federal Board of Revenue fell Rs429 billion short of its revenue target during the first eight months of fiscal year 2025-26, even as overall collection posted double-digit growth, according to provisional figures released on Saturday.
Tax receipts for July–February stood at Rs8.121 trillion against the projected Rs8.550 trillion. The collection was 11 per cent higher than Rs7.334 trillion raised in the corresponding period last year.
In February alone, the FBR collected Rs944 billion, marking a 12 per cent increase from Rs844 billion a year earlier. However, the amount missed the monthly target of Rs1.029 trillion by Rs85 billion.
Head-wise data showed income tax collection at Rs3.956 trillion during 8MFY26, falling short of the Rs4.098 trillion target by Rs142 billion, though still 12 per cent higher than Rs3.525 trillion collected in the same period last year.
Sales tax receipts totalled Rs2.783 trillion against a projection of Rs3.028 trillion, resulting in a Rs245 billion gap. The figure represented a 10 per cent increase from Rs2.530 trillion last year. Customs duty collection stood at Rs850 billion, missing the Rs898 billion target by Rs48 billion, but showing 5 per cent growth over Rs813 billion recorded a year earlier.
In contrast, Federal Excise Duty collection reached Rs532 billion, surpassing the Rs526 billion target and rising 14 per cent from Rs467 billion in the corresponding period last year.
The revenue shortfall has primarily been attributed to slower domestic sales tax mobilisation, suspension of super tax and related factors. The International Monetary Fund, in its latest review, has already reduced the FBR’s annual tax target by Rs150 billion.
Refunds and rebates issued during July–February amounted to Rs386 billion, compared to Rs352 billion in the same period last year, reflecting an increase of 9.65 per cent.
In the previous fiscal year, the FBR collected Rs11.737 trillion against a revised target of Rs11.900 trillion, missing the mark by nearly Rs163 billion despite two downward revisions. The collection nonetheless marked a 26.19 per cent increase from Rs9.301 trillion recorded in FY24.
Separately, FBR Chairman Rashid Mahmood Langrial told an 18-member delegation of the Islamabad Chamber of Commerce and Industry, led by President Sardar Tahir Mahmood, that taxes legally due would be collected under all circumstances. He said genuine hardship cases would be given special consideration but warned that tax evasion would not be tolerated. The delegation raised concerns relating to super tax, pending refunds, point-of-sale integration for small businesses, and taxation of the real estate and property sectors. Langrial directed relevant wings to examine the issues and address legitimate concerns on priority.
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