ISLAMABAD: Two big unavoidable and unanticipated factors resulted in shortfall of tax collection of the Federal Board of Revenue (FBR) during July-October (2026-27) including an extraordinary high/ over ambitious target, less collection from few key sectors including financial companies/ banks, state owned enterprises (SOEs) and power sector during this period.
Sources told Business Recorder that the Federal Board of Revenue (FBR) collected Rs 30 billion less from financial companies under the head of monthly advance tax collection in October 2026. The FBR was anticipating Rs 30-35 billion additional revenue from financial institutions during the month of October 2026. Unfortunately, the monthly advance tax collection from financial institutions remained not satisfactory.
Secondly, it is a fact that tax collection from power distribution companies is decreasing from every passing day. The distribution companies (Discos) tax contribution is reducing every month due to obvious reasons.
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At the same time, the contribution of power sector has also been reduced in October 2026.
The unavoidable circumstances has caused revenue shortfall despite massive enforcement measures and administrative actions.
The FBR has provisionally collected Rs 1003 billion in October 2026 against Rs930 billion last year, reflecting a handsome increase of Rs73 billion.
The FBR has collected Rs 1003 billion in October 2026 against Rs 1132 billion, reflecting 90 percent achievement of target.
The FBR has provisionally collected Rs 1003 billion in October 2026 against target of Rs 1132 billion, reflecting 90 percent achievement of target.
During July-October (2026-27), the tax machinery collected Rs4089 billion during July-October (2026-27) against the target of Rs 4,185 billion during this period, reflecting gap of only Rs 96 billion.
Copyright Business Recorder, 2026
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