ISLAMABAD: The Federal Board of Revenue (FBR) has reported a tax collection shortfall of Rs270 billion during the first four months of the ongoing fiscal year, from July to October 2025, highlighting continued fiscal challenges for the government.
According to official data, the FBR collected Rs3.84 trillion in taxes during this period, against the target of Rs4.109 trillion, missing the goal by a significant margin.
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Sources revealed that the tax body also issued refunds worth Rs205 billion, further affecting the net revenue position. The month of October proved particularly difficult, with a shortfall of over Rs70 billion — the FBR collected Rs955 billion against the target of Rs1.026 trillion.
A sector-wise breakdown shows that the FBR collected Rs438 billion in income tax, Rs345 billion in sales tax, Rs70 billion in federal excise duty (FED), and Rs107 billion in customs duties. Despite ongoing efforts to enhance tax compliance and enforcement, all major revenue streams — including income, sales, customs, and excise duties — fell short of their targets.
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The shortfall poses a challenge to the government’s fiscal management and may compel policymakers to revisit revenue strategies to ensure stability in the coming months.