The Federal Board of Revenue (FBR) has collected a provisional Rs886 billion in August 2025, reflecting 12% growth but falling short of its monthly target of Rs950 billion by Rs64 billion.
During the first two months of the 2025-26 fiscal year (July–August), tax collection reached Rs1.65 trillion against a combined target of Rs1.698 trillion, leaving a shortfall of Rs47.5 billion.
FBR field offices will remain open on August 30 and 31 to allow taxpayers to make additional payments. Officials expressed confidence that total collections for August could surpass Rs900 billion by month-end.
The FBR has set a target of Rs1.385 trillion for September 2025. Considering the shortfall in the first two months, authorities need to collect Rs1.44 trillion in September to meet the desired first-quarter target of Rs3.08 trillion by September 30, 2025.
Tax experts attributed the revenue shortfall to lower electricity consumption and sluggish industrial activity, alongside weak enforcement measures. Revenue from electricity bills fell to Rs86 billion from Rs125 billion in the previous fiscal year, significantly contributing to the shortfall. Industrial production also underperformed, affecting overall tax receipts.
The government has set an annual revenue target of Rs14.13 trillion for FY26, requiring a 20% increase over last year. The FBR had anticipated higher enforcement and recovery of taxes tied up in litigation, but several setbacks emerged, including delayed implementation of asset-declaration rules and acceptance of traders’ cash deposits as banking transactions.
Income tax collections reached Rs695 billion, meeting the two-month target, while sales tax receipts stood at Rs625 billion, falling Rs65 billion short. Federal excise duty collection totalled Rs113 billion but remained slightly below target due to higher levies on beverages and other goods, which affected company sales.
Customs duty, however, rose to Rs200 billion, exceeding the monthly target, supported by the clearance of pending cargo. Import activity is expected to increase as the government reduces tariffs to encourage foreign competition.
Refund payments dropped to Rs37 billion in August from Rs53 billion in the same month last year, with cumulative refunds for July–August reaching Rs118 billion, nearly 11% below the previous fiscal year.
