FBR beats revised tax target by Rs21 billion

ISLAMABAD: The Federal Board of Revenue (FBR) said on Tuesday that it had collected over Rs13 trillion in FY26, exceeding the downwardly revised target of Rs12.983tr by over Rs21 billion, mainly due to stronger-than-expected income tax receipts.

The target was achieved largely because of higher-than-anticipated income tax collection in June. The provisional revenue also exceeded the Rs12.957tr benchmark agreed with the International Monetary Fund (IMF) in case the FBR failed to meet the revised target.

Collections rose 11 per cent to Rs13.004tr in FY26 from Rs11.745tr in FY25. Income tax revenue exceeded the revised target, while sales tax, customs duty and federal excise duty (FED) collection fell short of their respective targets.

Higher-than-expected receipts from the petroleum development levy (PDL) also helped offset the shortfall from the original budgetary target. The levy generated Rs1.564tr in FY26 against a projected target of Rs1.468tr, exceeding expectations by Rs96bn.

Collection hits Rs13tr in FY26, aided by higher income tax receipts

Collection hits Rs13tr in FY26, aided by higher income tax receipts

The record PDL receipts were largely driven by historically high levy rates, with the government charging up to Rs120 per litre on petrol. Unlike general sales tax on petroleum products, which is collected by the FBR and shared with provinces under the National Finance Commission award, PDL receipts accrue entirely to the federal government. Petroleum products currently carry no GST. The government has projected an annual revenue collection target of Rs15.264tr for........

© Dawn Business