The Federal Board of Revenue (FBR) has failed to achieve its assigned tax collection targets for the first half of the ongoing financial year, posting a shortfall of more than Rs335 billion.
According to official sources, the FBR missed its monthly tax target for the fifth consecutive month of the current fiscal year. From July to December, total tax collection reached Rs6,154 billion against a target of Rs6,489 billion. Except for July 2025, the revenue authority did not meet its targets in any month. In December alone, collections were around Rs25 billion below the set target.
During December, tax receipts stood at Rs1,421 billion compared to a target of Rs1,446 billion. Income tax remained the largest contributor with Rs828 billion, followed by sales tax at Rs434 billion, customs duty at Rs123 billion, and federal excise duty exceeding Rs72 billion. Tax refunds worth Rs38 billion were also issued during the month.
The annual tax target has been revised downward from Rs14,130 billion to Rs13,979 billion in consultation with the International Monetary Fund (IMF). On the last day of December, the corporate sector made sizeable payments totaling Rs305 billion.
The IMF is expected to review the FBR’s tax performance next week. With revenues continuing to lag behind targets, the government may consider introducing new tax measures in the coming quarter or opt for expenditure cuts to bridge the gap. Persistently weak revenue collection could put pressure on the budget deficit and broader fiscal objectives.
