FBR collects Rs810 billion in taxes in July, exceeding target
Published 1 hour ago | By Editorial Desk
The Federal Board of Revenue has collected Rs810 billion in taxes in July, the first month of the fiscal year 2026-27, exceeding the set monthly target by Rs30 billion. The overall collections remained above the target, recording only a 7 percent increase compared to the previous year, however, further steps will be required to significantly improve revenues.
According to provisional data, the FBR collected Rs757 billion in July last year, while this amount increased to Rs810 billion in July this year. The government and the International Monetary Fund (IMF) have set the overall target for the fiscal year for the FBR at Rs15.263 trillion, for which 17 percent additional collection is necessary compared to the previous year.
The IMF has made the loan program conditional on the achievement of the tax target, while the provinces have also promised to provide grants of more than Rs1 trillion for defense and water resources projects on the condition that the FBR achieves the annual target.
According to the data, income tax collection in July was over Rs 300 billion, but it was Rs 23 billion less than the target. According to experts, the main reasons were the decrease in advance tax collections and withholding tax on property and salaried class in June.
On the other hand, sales tax collection was Rs 358 billion, which is Rs 53 billion more than the target and 18 percent more than last year. About 78 percent of the total sales tax, or Rs 275 billion, was collected at the import stage, where the chances of tax evasion are relatively low. Federal excise duty collection was Rs 48 billion, which is slightly more than the target and the same as last year, while customs duty collected Rs 105 billion, which is in line with the target and Rs 2 billion more than last year.
Overall, the FBR collected 54 percent, or more than Rs 440 billion, at the import stage, where revenue collection is considered relatively effective. About 227,000 income tax returns were also filed during July, while the FBR issued tax refunds worth Rs98 billion, which is Rs13 billion more than last year.
Meanwhile, the FBR could not persuade the government to impose a purchase ban on those whose declared financial resources were insufficient to buy expensive property, vehicles or other investments. The federal cabinet rejected the proposal to implement Section 114C of the Income Tax Ordinance from July 1, 2026.
Under the law, people with insufficient declared resources were prohibited from buying vehicles worth more than Rs7 million, property worth more than Rs100 million, investing in shares worth more than Rs50 million and withdrawing cash from bank accounts in total more than Rs100 million.
