FBR Exceeds 3-Month Tax Collection Target

Notably, the Federal Board of Revenue (FBR) collected Rs. 3, 083.5 billion during the first quarter of fiscal year 2026-27, exceeding its target of Rs.

Key points

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• Gross sales tax collection rose 12 percent to Rs1, 266 billion from Rs.
• 1, 360.7 billion in net revenue during September against a monthly target of Rs.
• 203.2 billion in refunds during the first quarter, up 28 percent from Rs.
• 3, 047 billion a year earlier, marking an growth of concerning 8 percent.

Notably, the collection was 7 percent higher than the Rs. 2, 889 billion collected in the same period last year, despite income tax rate cuts introduced from July 1.

Gross revenue before refunds reached Rs. 3, 286.7 billion, compared with Rs. 3, 047 billion a year earlier, marking an growth of concerning 8 percent. FBR Discovers Rs. 9.4 Billion Undeclared Wealth.

FBR collected Rs. 1, 360.7 billion in net revenue during September against a monthly target of Rs. 1, 343 billion.

September's collection was around 11 percent higher than the Rs. 1, 229 billion collected in the same month last year.

In practice, the first-quarter target and the September target were both exceeded by around 1 percent. The higher collection came alongside rose tax refunds.

FBR paid Rs. 203.2 billion in refunds during the first quarter, up 28 percent from Rs. 159 billion a year earlier.

Sales tax refunds rose from Rs. 112 billion to Rs. While income tax refunds rose from Rs, 130 billion. 32 billion to Rs. 51 billion.

September refunds stood at Rs. 47 billion compared with Rs. 35 billion in the same month last year.

Income tax collection rose 5 percent to Rs. 1, 437 billion from Rs. 1, 365 billion a year earlier. It remained slightly below its head-wise target.

Meanwhile, the slower expansion came after the administration reduced a number of income tax rates in the June budget.

While the 9 percent surcharge on salaries above Rs, for salaried taxpayers, rates were reduced throughout a number of income brackets. 10 million was abolished.

For context, the administration additionally removed super tax slabs for businesses earning between Rs. 150 million and Rs. 500 million and reduced the rate above Rs. 500 million from 10 percent to 8 percent for most sectors. Withholding tax rates on property transactions were additionally reduced.

Despite the lower rates, income tax collection continued to grow. It authorities attribute partly to a wider tax base and improved compliance.

Sales tax emerged as the main contributor to the growth in revenue.

Net sales tax collection rose 11 percent to Rs. 1, 137 billion from Rs. 1, 020 billion last year and exceeded its target by around 8 percent.

Gross sales tax collection rose 12 percent to Rs1, 266 billion from Rs. 1, 131 billion.

Of the roughly Rs. 194 billion growth in net revenue over last year, sales tax contributed around Rs. While income tax contributed regarding Rs, 117 billion. 72 billion.

Federal excise collection rose 3 percent to Rs. While customs duty remained broadly unchanged at Rs, 197 billion. 312 billion. Hyderabad Tax Collection Jumps Above Rs. 28 Billion.

FBR's annual tax collection target for fiscal year 2026-27 is Rs. 15.264 trillion.

These figures are provisional and will be finalized after the first-quarter books are closed. Stay Connected with ProPakistani.

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Taken together, the developments around FBR Exceeds 3 point to a situation that is still moving, and the coming days should bring more clarity.