The Federal Board of Revenue (FBR) has devised a strategy to meet its revised tax collection target for the second half of the 2025-26 fiscal year. This strategy focuses on administrative actions and recovering stuck-up revenue. On Thursday, FBR Chairman Rashid Mahmood Langrial chaired a crucial meeting with Chief Commissioners of Inland Revenue, Chief Collectors of Customs, and FBR members overseeing Inland Revenue and Customs operations to discuss the way forward.
The meeting focused on overcoming the revenue shortfall from the first half of the fiscal year, which had seen a revised target of Rs13,979 billion, down from the original target of Rs14,307 billion. The shortfall of Rs328 billion prompted a detailed discussion on recovery measures, including enforcement actions and resolution of pending court cases.
According to FBR sources, the tax authorities discussed strategies to meet the target through administrative actions, as well as recovery efforts from uncollectible revenue. Additionally, the meeting addressed potential additional revenue measures, such as increasing excise duties on fertilisers and pesticides, introducing excise taxes on high-value sugary items, and expanding the sales tax base by moving select items to the standard rate.
The December 2025 provisional tax collection was reported at Rs1,425 billion, slightly falling short of the monthly target of Rs1,446 billion. However, the total tax collected during July-December 2025 amounted to Rs6,169 billion, reducing the shortfall to Rs336 billion from the previously projected Rs564 billion.
The meeting commended the efforts of FBR Member Inland Revenue (Operations) Zubair Bilal, whose contribution in driving revenue generation helped mitigate the shortfall. The tax authority is now focused on ensuring that the revised target is met by March 2026.
In a related development, the government has dismissed the possibility of a mini-budget, following the achievement of approximately 95% of the assigned tax collection target for July-December 2025-26.
As per reports, Finance Minister Muhammad Aurangzeb congratulated the Federal Board of Revenue (FBR) for reaching 95% of the target for the first half of the fiscal year.
The FBR also met 98.3% of its December 2025 target, further highlighting its progress.
Sources revealed that the FBR is not working on any new revenue measures for January 2026 and is not drafting any new bills or ordinances. The government has assured that no new tax initiatives are under consideration at this point, given the FBR’s performance in meeting its targets.
