FBR tax shortfall widens to Rs684 billion in 10 months of FY2025-26

The Federal Board of Revenue (FBR) reported a tax shortfall of Rs684 billion in the first ten months of the current fiscal year, with collections standing at Rs10,261 billion against a target of Rs10,945 billion.

Data showed that revenue collection has come under pressure, particularly due to a decline in sales tax at the import stage. The downturn has been linked to reduced import volumes and slowing economic activity.

In April 2026, the FBR collected Rs956 billion against a target of Rs1,029 billion, resulting in a monthly shortfall of Rs73 billion. The revenue gap has widened further due to disruptions created by war in the Middle East, which has affected trade flows and economic momentum.

To meet the revised annual target of Rs13,979 billion by June 2026, the FBR will need to collect Rs3,718 billion during May and June. Officials indicated that even achieving collections in the range of Rs13,000 billion to Rs13,200 billion would be considered a realistic outcome under current conditions.

The FBR had approached the International Monetary Fund (IMF) to lower the annual target to between Rs13,400 billion and Rs13,500 billion, but the request was not accepted.

According to provisional figures, income tax collection stood at Rs5,142 billion during July–April, while sales tax contributed Rs3,825.5 billion. Federal excise duty collections reached Rs672.9 billion, and customs duty stood at Rs1,119.5 billion.

Total gross revenue amounted to Rs10,760.6 billion, from which Rs498.9 billion was paid out as refunds, resulting in a net collection of Rs10,261.7 billion for the period.