The Federal Board of Revenue (FBR) has failed to meet its assigned tax collection targets for the first half of the current financial year.
According to details surfaced on Thursday, the FBR missed its tax target for the fifth consecutive month in the current fiscal year. During the first six months, the tax revenue shortfall exceeded Rs335 billion.
According to FBR sources, tax collection from July to December stood at Rs6,154 billion against a target of Rs6,489 billion. Except for July 2025, the tax target was not achieved in any month. In December as well, tax collection remained around Rs25 billion below the target.
In December, tax receipts amounted to Rs1,421 billion against a target of Rs1,446 billion. The highest contribution came from income tax at Rs828 billion. Sales tax collection stood at Rs434 billion, customs duty at Rs123 billion, and federal excise duty exceeded Rs72 billion.
FBR officials said Rs38 billion was paid out in tax refunds during December. The annual tax target was revised downward from Rs14,130 billion to Rs13,979 billion. On the final day of December, the corporate sector made large payments amounting to Rs305 billion.
Sources said the annual tax target was revised in consultation with the International Monetary Fund. The IMF is scheduled to review the FBR’s tax performance next week.
Due to revenue remaining below target, the likelihood of new tax measures in the next quarter remains. As an alternative to covering the shortfall, proposals include cuts in government expenditure. A decline in tax revenue is feared to affect the budget deficit and other fiscal targets.
