Islamabad (Commerce Desk) The Federal Board of Revenue (FBR) collected Rs810 billion in taxes during July, the first month of the financial year 2026-27, which is Rs30 billion higher than the set monthly target.
According to provisional figures, FBR’s collection in July last year was Rs757 billion, which increased to Rs810 billion this year. However, on an annual basis, tax collection recorded an increase of only 7 percent, indicating the need for additional measures to further improve revenue generation.
The government and the International Monetary Fund (IMF) have set FBR’s overall tax target at Rs15.263 trillion for the current fiscal year, which will require 17 percent higher collections compared to last year to achieve the target.
The IMF has linked its loan programme with the achievement of tax targets, while provinces have also linked their commitment to provide more than Rs1 trillion in grants for defence and water resource projects with the achievement of FBR’s annual target.
According to the data, income tax collection in July remained above Rs300 billion; however, it was Rs23 billion below the target. Experts say the decline in advance tax collections in June and lower withholding tax on property transactions and salaried individuals were major reasons behind the shortfall.
On the other hand, sales tax collection stood at Rs358 billion, which was Rs53 billion higher than the target and 18 percent more than last year. Around 78 percent of total sales tax, amounting to Rs275 billion, was collected at the import stage, where the chances of tax evasion are relatively lower.
Federal excise duty collection amounted to Rs48 billion, slightly above the target and equal to last year’s level, while customs duty generated Rs105 billion, meeting the target and exceeding last year’s collection by Rs2 billion.