FBR Tax Collection Surges with Rs 1,015 Billion Recovered in January

ISLAMABAD: The Federal Board of Revenue (FBR) reported a strong surge in tax revenue collection for January 2026, signaling improved compliance and steady growth in Pakistan’s fiscal performance. During the first seven months of the current fiscal year, the FBR collected a record Rs 7,176 billion, up from Rs 6,490 billion in the same period last year.

In January 2026 alone, tax collection reached Rs 1,015 billion, a significant increase compared to Rs 873 billion in January 2025. Sales tax revenue also rose to Rs 360 billion, marking a 12% growth over last year’s Rs 322 billion. Overall, monthly collections from federal excise duties, customs duties, and income tax contributed substantially to the total revenue, with income tax exceeding Rs 3,026 billion, sales tax at Rs 2,086 billion, federal excise duties at Rs 400 billion, and customs duties at over Rs 642 billion in the first half of the fiscal year.

The FBR also noted a marked improvement in tax compliance, with over 7 million income tax returns filed during July–December 2025, compared to 5.2 million in the same period last year. Despite a revenue shortfall of Rs 335 billion during the first half of the fiscal year, the trend indicates stronger collection momentum.

Additionally, the FBR reinforced its zero-tolerance policy for misconduct by suspending six officials found unauthorizedly absent from their assigned monitoring duties at sugar mills under Section 40B of the Sales Tax Act, 1990. This action highlights the authority’s focus on transparent and effective monitoring of critical industries.

The consistent revenue growth, improved compliance, and strict enforcement measures reflect Pakistan’s ongoing efforts to strengthen fiscal management and broaden the tax base.