FBR Falls Short of 4-Month Tax Target by Rs. 94.2 Billion

The Federal Board of Revenue (FBR) has reported a shortfall of Rs. 94.2 billion in its tax collection for the first four months (July-October) of the fiscal year 2026-27, according to official data. The FBR collected Rs. 4.089 trillion in net revenue during this period, against a target of Rs. 4.184 trillion.

Despite the miss, the FBR's net collection grew by 6.6% compared to the same period last year, when it stood at Rs. 3.834 trillion. This represents an additional Rs. 254 billion in revenue. Gross collection before refunds was Rs. 4.355 trillion, with Rs. 265 billion returned to taxpayers.

The breakdown of the collection shows that net domestic taxes amounted to Rs. 3.662 trillion. Direct taxes contributed Rs. 1.86 trillion, including Rs. 1.667 trillion from domestic income tax and Rs. 162 billion from income tax collected at the import stage. Sales tax collection reached Rs. 1.524 trillion, with Rs. 1 trillion from general sales tax on imports and Rs. 523 billion from domestic sales tax. Federal Excise Duty brought in Rs. 277 billion, while customs duty stood at Rs. 427 billion.

For the month of October 2026 alone, the FBR collected Rs. 1.003 trillion against a target of Rs. 1.131 trillion, a shortfall of Rs. 127.389 billion. However, this was 5.6% higher than the Rs. 950 billion collected in October last year. Domestic taxes accounted for Rs. 888 billion of October's net collection, with income tax contributing Rs. 371 billion, general sales tax generating Rs. 251 billion from imports and Rs. 135 billion from domestic transactions, and customs duty at Rs. 115 billion.

The 6.6% growth rate in the first four months is seen as a concern for the tax authority as it strives to meet its annual revenue target. The shortfall highlights the challenges faced by the FBR in expanding the tax base and improving compliance amid economic pressures.