ISLAMABAD: The Federal Board of Revenue (FBR) recorded a notable rise in tax collection during January, signalling renewed momentum in Pakistan’s revenue performance. The authority collected Rs1.031 trillion for the month, reflecting a 16 percent increase compared to the same period last year. Although the figure fell slightly short of the monthly target, it points to strengthening fiscal trends heading into the second half of the financial year.
Officials reported particularly strong gains in direct taxation, while indirect taxes showed moderate improvement. January’s income tax receipts posted an impressive 26 per cent year-on-year surge, indicating better enforcement and progress in resolving outstanding tax matters. Sales tax collection also grew by 12 per cent, supported by a rebound in large-scale manufacturing activity.
For the first seven months of FY26, total tax collection reached Rs7.176 trillion, representing an 11 per cent increase from the previous year, though still below the projected target. Shortfalls were largely linked to weaker domestic sales tax performance and earlier uncertainty surrounding the super tax. A recent court decision upholding the levy is expected to generate significant additional revenue, helping narrow the gap in the coming months.
Refund disbursements rose moderately during the period, reflecting improved processing and compliance mechanisms. Federal Excise Duty outperformed expectations, while income tax, sales tax, and customs duties all registered year-on-year growth despite missing individual targets.
FBR officials attribute the improved performance to ongoing structural reforms, expanded digital monitoring, and enhanced enforcement efforts that are broadening the tax base and encouraging voluntary compliance. With economic activity gradually picking up, authorities remain hopeful that sustained growth in manufacturing and trade will help the country move closer to achieving its full-year revenue objectives.
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