FBR January revenue rises 16% to Rs1,015 billion

The Federal Board of Revenue reported a 16% month-on-month increase in tax collection in January 2026, with provisional revenue standing at Rs1,015 billion, compared with Rs873 billion in January last year.

According to a press release by the FBR, January’s collection exceeded the six-month average growth rate of 10–11%, indicating an acceleration in revenue mobilisation during the ongoing fiscal year.

"This month’s tax performance reveals a nuanced and strategically significant fiscal outcome, characterized by substantial increase in direct taxation, modest growth in indirect and excise streams, and an overall healthy and improved performance in January 2026," said the press release.

Income tax collections rose to Rs483 billion in January, up from Rs381 billion a year earlier, reflecting a 26% year-on-year increase. Sales tax receipts reached Rs360 billion, compared with Rs322 billion last year, registering 12% growth. The FBR linked sales tax performance to an improvement in large-scale manufacturing (LSM) activity.

The revenue authority said collections from indirect taxes and federal excise duties recorded moderate growth during the month, contributing to the overall increase in January receipts.

Cumulatively, the FBR collected Rs7,176 billion during the first seven months of FY2026, compared with Rs6,490 billion in the same period last year.

The FBR stated that it expects continued recovery in large-scale manufacturing to support revenue collection in the remaining months of the fiscal year and said it aims to maintain the current pace to meet annual targets.