The Federal Board of Revenue (FBR) failed to achieve its tax collection targets for the first half of fiscal year 2025-26, marking the fifth consecutive month of shortfalls in revenue performance.
During the July–December 2025 period, the FBR collected Rs6,154 billion against a target of Rs6,489 billion, falling short by over Rs335 billion despite meeting the initial July collection target.
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December collections alone reached Rs1,421 billion, Rs25 billion below the target of Rs1,446 billion, with income tax contributing Rs828 billion, sales tax Rs434 billion, customs Rs123 billion, and federal excise duties over Rs72 billion.
The FBR issued Rs38 billion in tax refunds during December, and significant corporate payments totaling Rs305 billion were received on the last day of the month, reflecting efforts to mitigate the shortfall.
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As a result, the annual tax target has been revised down from Rs14,130 billion to Rs13,979 billion, a move carried out in consultation with the International Monetary Fund, which will review FBR’s performance next week.
Authorities have indicated that new tax measures may be introduced in the next quarter, while proposals to reduce government spending are also under consideration to manage potential impacts on the budget deficit and economic targets.