Aurangzeb urges FBR to intensify enforcement, expand tax net

The federal government has called for a further tightening of tax enforcement and accelerated efforts to broaden the tax base, as Finance Minister Senator Muhammad Aurangzeb urged the Federal Board of Revenue (FBR) to intensify compliance measures and expand the tax net.

According to a statement released on Friday, Aurangzeb has lauded the FBR field formations for achieving the highest tax collection ever recorded in the month of December, describing the performance as a strong validation of the government’s fiscal reform agenda and sustained focus on compliance, enforcement, and digitisation.

Addressing Team FBR and field formations via a video link conference, the finance minister stated, “The progress made over the last 18 months is remarkable, and the December 2025 collection is extremely encouraging.”

He emphasised that the government’s strategy of digitising the economy, promoting cashless transactions, and strengthening enforcement while maintaining business momentum has begun to deliver tangible and sustainable results.

Reflecting this policy direction and administrative resolve, the FBR collected Rs1,427.1 billion in December 2025, achieving 99% of its monthly target of Rs1,446 billion.

“This performance represents the highest revenue collection for December in any year, underscoring improved tax compliance and effective enforcement across the system,” read the statement.

The Inland Revenue Service (IRS) achieved 99.8% of its target, collecting Rs1,308 billion against a target of Rs1,310 billion.

On a month-on-month basis, revenue collection surged by 59%, rising from Rs898 billion in November to Rs1,427.1 billion in December.

This growth was broad-based across all major tax heads.

Income tax collection more than doubled, increasing by 107%, from Rs402 billion in November to Rs831.5 billion in December.

Sales tax collection rose by 25% to Rs403.7 billion, while Federal Excise Duty (FED) increased by 6% to Rs72.8 billion. Customs duty collection also grew by 15%, reaching Rs118.9 billion.

“Under the continuous oversight of the FBR Board and in line with the finance ministry’s reform roadmap, these results reflect a decisive shift toward stronger compliance, improved enforcement, and institutional accountability, reinforcing confidence in the government’s commitment to sustainable revenue growth,” read the statement.

Concluding his address, the finance minister urged FBR field formations to further intensify their efforts and double down on initiatives aimed at deepening and widening the tax net. He emphasised that better tax compliance and enforcement measures are the only sustainable way to ease the tax burden on the formal sector.

The finance minister expressed confidence that Team FBR, through continued diligence, professionalism, and effective enforcement, would play a pivotal role in achieving this critical national objective.