Rs7.2 trillion: FBR’s Jul-Jan FY26 tax collections miss target

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs7,176 billion during the first seven months (July-January) of the current fiscal year (2025-26) against the assigned target of Rs 7,521 billion, reflecting a shortfall of Rs345 billion.

The monthly data revealed that the FBR has collected Rs1,015 billion during January 2026 against target of Rs1,030 billion, reflecting a shortfall of Rs15 billion.

According to the FBR, the FBR collection in the month of January 2026 records robust growth of 16 percent month on month surpassing six-month average growth of 10 to 11 percent reflecting a clear encouraging path for the remaining months of FY-2026. The provisional collection stood at Rs.1015 billion against the collection of Rs.873 billion last year.

Last 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. It also reinforces the credibility of reform-driven revenue mobilization and transformation plan of FBR.

READ MORE: Rs336bn shortfall: Jul-Dec tax collection totals Rs6.154trn

The collection from income tax has shown significant improvement and has reached Rs 483 billion against collection of Rs 381 billion — representing a 26 percent impressive growth over previous year.

This improved revenue collection performance is not incidental but reflects the structural impact of the FBR’s reforms especially its enhanced enforcement measures and coordinated effort to realize the collection stuck in litigation. Sales tax collections in January stood at Rs 360 billion against collection of Rs 322 billion showing growth of 12 percent over previous year. This trend is reflective of recovery and improvement in large scale manufacturing (LSM) growth which is a very positive and encouraging development.

January’s results validate FBR’s reform-driven transformation plan. By leveraging digital infrastructure and the collection through enforcement measures, FBR is improving compliance, expanding and deepening the tax net, and fostering taxpayer trust. This performance in direct taxes signals emerging behavioural shifts toward greater voluntary compliance, with potential spill over benefits in coming months.

The FBR has collected Rs. 7,176 billion in the first seven months of the current FY 2026 against the collection of Rs.6,490 last year. The FBR is optimistic that the growth recovery trends in LSM will continue which will help it in achieving the revenue targets for the current fiscal year. Team FBR is fully committed to continue this momentum of growth in the remaining months.

Copyright Business Recorder, 2026