FBR tax collection increases: Rs 1,015 billion retrieved in January alone

Reported a significant rise in tax revenue collection by the Federal Board of Revenue (FBR) for January 2026.

The FBR reported a record collection of Rs 7,176 billion in the first seven months of the current fiscal year, in contrast to Rs 6,490 billion received during the corresponding time last year.

The average sales growth over the past six months has consistently ranged from 10% to 11%.

In January 2026, the tax authorities amassed an impressive Rs 1,015 billion, reflecting substantial rise compared to the Rs 873 billion collected in the same month of the previous year.

Furthermore, income collection increased from Rs 381 billion to Rs 483 billion.

Additionally, the FBR amassed Rs 360 billion in sales tax in January, reflecting a 12% increase from previous year’s collection of Rs 322 billion.

In January, the FBR reported a revenue shortfall of Rs335 billion due to its inability to achieve the tax collection target for the first half of the current fiscal year (July–December).

Sources indicate that the tax target for the initial six months was established at Rs6,490 billion, however the FBR succeeded in collecting Rs6,155 billion, leading to a substantial shortfall.

In December 2025, the revenue deficit amounted to almost Rs25 billion, according to sources.

Between July and December, the FBR disbursed Rs292 billion in tax refunds. Income tax revenues surpassed Rs3,026 billion, and sales tax revenues totaled Rs2,086 billion during the first half of the fiscal year.

Collections from federal excise duty amounted to Rs400 billion, while customs duty contributed over Rs642 billion, as per the data.

The sources indicated a significant rise in tax return submissions. In the preceding fiscal year, 5.2 million income tax returns were submitted over the July to December interval.

The figure exceeded 7 million returns in the same time of the current fiscal year, signifying enhanced compliance despite the overall income deficit.

The Federal Board of Revenue (FBR) has commenced disciplinary proceedings and promptly suspended six officials for being unauthorizedly absent from their designated monitoring responsibilities at sugar mills, reiterating its zero-tolerance stance on misbehavior and neglect of duty.

Officials were assigned pursuant to Section 40B of the Sales Tax Act, 1990, to guarantee efficient, transparent, and continuous oversight of sugar production, according to a news release.