ISLAMABAD – The Federal Board of Revenue (FBR) faced a Rs270 billion revenue shortfall from July to October 2025. The agency collected less than its set target for the first four months of the financial year. The gap highlights ongoing challenges in tax compliance and collection.
Sources said FBR collected Rs3,840 billion during this period, while the target was Rs4,109 billion. The shortfall reflects gaps across income tax, sales tax, customs duties, and federal excise. The agency also issued Rs205 billion in refunds, further affecting net revenue.
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October alone saw a deficit of over Rs70 billion. The board collected Rs955 billion in the month, while the target was Rs1,026 billion. Officials said slower economic activity and delayed tax payments contributed to the shortfall.
Income tax contributed Rs438 billion, sales tax Rs345 billion, federal excise duty Rs70 billion, and customs duty Rs107 billion. All main revenue streams fell below their respective targets. Officials also noted that some sectors struggled due to regulatory and operational challenges.
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FBR sources said the board is taking measures to improve collections. Authorities are increasing audits, enforcing compliance, and encouraging timely tax payments to meet targets for the rest of the fiscal year.