FBR collects Rs8.094 trillion in 8MFY26, misses target by Rs0.456 trillion

The Federal Board of Revenue (FBR) has provisionally collected Rs8.094 trillion, up 10.5%, during the first eight months (July–February) of FY2025-26, falling short of the assigned target of Rs8.550 trillion by Rs0.456 trillion.

The collection figure covers the first 27 days of February 2026. For the month, the FBR has provisionally collected Rs918 billion against a target of Rs1.029 trillion, reflecting a shortfall of Rs111 billion so far. Officials expect the February collection to rise to around Rs950 billion after final compilation, with all field formations remaining open on February 28 to facilitate payments.

The government had originally set the FBR’s annual target at Rs14.13 trillion but reduced it by Rs216 billion after the second IMF review. Sources said the FBR has proposed a further downward revision, which will be taken up with the IMF next week.

The Express Tribune reported that to offset the revenue gap and meet the primary surplus target agreed with the IMF, the government has increased petroleum levy rates and curtailed development spending.

A breakdown of collections shows that income tax stood at Rs3.94 trillion against a revised target of Rs4.1 trillion, missing the goal by Rs0.16 trillion, though 15% higher than last year.

Sales tax collection amounted to Rs2.8 trillion, Rs0.322 trillion below target, but 11% higher year-on-year. Federal excise duty reached Rs0.531 trillion, Rs0.006 trillion above the revised target and 17% higher than last year. Customs duty collection stood at Rs85 billion, missing the target by Rs0.049 trillion.

The provisional Rs8.1 trillion collection includes Rs0.125 trillion recovered under the super tax. Officials indicated that without the Federal Constitutional Court’s ruling in January in favour of the FBR, total collections would have remained below Rs8 trillion. Sources added that super tax was also recovered in cases where advance payments had already been made, and said the net fiscal impact of the judgment may be lower than the FBR’s estimate of Rs216 billion.

During the period, the FBR paid Rs385 billion in refunds, Rs33 billion more than in the previous fiscal year.

Despite the shortfall, revenue authorities have directed all Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) to remain open on February 28 as a normal working day for the collection of duties and taxes.

The State Bank of Pakistan has also directed banks to remain open on Saturday. This marks the third consecutive month in which banks have been asked to operate on a weekend to facilitate end-of-month tax payments.