ISLAMABAD: The Federal Board of Revenue (FBR) has achieved its twice-revised downward tax collection target of Rs12.957 trillion for the fiscal year 2025-26, marking a major milestone despite challenging economic conditions.
According to official figures, the FBR recorded a net tax collection of approximately Rs13.001 trillion, crossing the Rs13 trillion mark for the first time in the country’s history after accounting for refunds.
The annual revenue target was initially set at Rs14.307 trillion, later revised to Rs13.979 trillion, and subsequently reduced again to Rs12.957 trillion due to slower-than-expected economic activity and other fiscal challenges. The FBR successfully met this final revised target.
The tax authority also achieved its June 2026 revised collection target of Rs1.757 trillion, providing a strong finish to the fiscal year.
To support businesses, particularly exporters, the FBR issued more than Rs40 billion in tax refunds during the year while maintaining robust revenue collection.
FY2025-26 Tax Collection Breakdown
| Tax Head | Collection |
|---|---|
| Income Tax | Rs6.578 trillion |
| Sales Tax | Rs4.262 trillion |
| Federal Excise Duty (FED) | Rs840 billion |
| Customs Duty | Rs1.330 trillion |
| Total Net Collection | Rs13.001 trillion |
Officials credited the achievement to enhanced tax enforcement, improved compliance measures, and administrative reforms implemented throughout the fiscal year.
However, compared with the first revised target of Rs13.979 trillion, the final collection remained approximately Rs978 billion lower. The government had reduced the target for a second time to Rs12.957 trillion, which the FBR ultimately achieved.
The successful completion of the revised revenue target comes as the FBR begins implementing the FY2026-27 tax collection target, which has been significantly increased under the new federal budget and will require further improvements in tax compliance, enforcement, and documentation of the economy.
