The Federal Board of Revenue (FBR) missed its monthly revenue target by Rs76 billion in October, collecting Rs950 billion against the projection of Rs1.026 trillion. The shortfall pushed the cumulative gap for the first four months (July-October) of FY26 to Rs274 billion.
According to provisional data, total revenue during July–October stood at Rs3.84 trillion against a target of Rs4.11 trillion. Despite the shortfall, collections grew 12% compared to Rs3.43 trillion recorded in the same period last year. FBR officials attributed the shortfall mainly to slower domestic sales tax growth.
As part of its agreement with the International Monetary Fund (IMF), the government has pledged to introduce contingency tax measures from January 2026 if revenue performance remains below target. These may include raising GST on solar panels from 10 to 18%, higher taxes on telecom services, and an increase in the Federal Excise Duty on fertilisers and pesticides. The IMF’s proposal for a one-percent general sales tax increase, however, was rejected by the government.
In October, the FBR collected Rs430 billion from income tax, Rs345 billion from sales tax, Rs70 billion from Federal Excise Duty, and Rs109 billion from customs duty. Refunds of Rs48 billion were issued during the month — more than double the Rs19 billion refunded a year earlier.
Regional tax offices showed mixed performance. Large Taxpayer Units (LTUs) in Karachi, Lahore, and Islamabad underperformed, while some Regional Tax Offices (RTOs) in Lahore, Karachi, and Gujranwala surpassed their goals.
The FBR reported a record 5.9 million income-tax returns filed by October 31 — a 17.6% increase from last year. Of these, 3.6 million filers submitted returns with tax payments, generating Rs69 billion, up 15% year-on-year.
