FBR Revenue: Pakistan Exceeds Revised Tax Target With Rs13 Trillion Collection
Higher income tax receipts helped the Federal Board of Revenue surpass its revised FY26 goal despite slower economic activity and regional challenges.
FBR exceeds revised FY26 revenue target as income tax collection strengthens.
ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) collected more than Rs13 trillion during fiscal year 2025–26, surpassing its revised revenue target and delivering stronger-than-expected income tax receipts in the final month of the fiscal year.
According to provisional figures released on Tuesday, total revenue collection reached Rs13.004 trillion, exceeding the revised target of Rs12.983 trillion by more than Rs21 billion. The figure also remained above the Rs12.957 trillion benchmark agreed with the International Monetary Fund (IMF).
Annual revenue increased by 11 per cent from Rs11.745 trillion recorded in FY25. Income tax remained the strongest contributor and helped offset lower-than-target collections in sales tax, customs duty and federal excise duty.
The government also received additional support from higher petroleum development levy (PDL) receipts. PDL collection reached Rs1.564 trillion during FY26, exceeding the projected target of Rs1.468 trillion by Rs96 billion.
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Record PDL receipts reflected historically high levy rates on petroleum products, with charges reaching up to Rs120 per litre on petrol. Unlike general sales tax, which provinces share under the National Finance Commission framework, PDL revenue goes entirely to the federal government. Petroleum products currently remain exempt from GST.
The government has set a new revenue target of Rs15.264 trillion for FY27.
Unlike the previous fiscal year, when revenue goals proved difficult to achieve, the FBR met its revised target after authorities adjusted expectations in consultation with the IMF.
Officials linked slower revenue growth during FY26 to three major factors: widespread flooding, tensions in the Middle East and weaker economic activity.
During June alone, the FBR collected Rs1.770 trillion against a revised monthly target of Rs1.753 trillion, exceeding the goal by Rs17 billion. Monthly collection also rose 18 per cent compared with Rs1.506 trillion recorded in the same month last year.
The government originally set the FY26 revenue target at Rs14.131 trillion before revising it downward by approximately Rs1.127 trillion to reflect changing fiscal conditions.
Meanwhile, taxpayer refunds and rebates increased to Rs598 billion during FY26, compared with Rs493 billion a year earlier.
Income tax collection reached Rs6.579 trillion, exceeding the revised target by Rs51 billion and posting annual growth of 14 per cent.
Sales tax collection stood at Rs4.254 trillion, narrowly missing the revised target by Rs1 billion while recording 9 per cent annual growth.
Customs duty collection totalled Rs1.331 trillion, falling short of target by Rs18 billion but increasing 4 per cent year-on-year.
Federal excise duty collection reached Rs840 billion, below the revised target of Rs851 billion, while still posting 10 per cent annual growth compared with the previous fiscal year.
