The Federal Board of Revenue (FBR) has fallen short of its collection target for the first quarter of the current fiscal year. From July to September 2025, the authority managed to gather Rs2.885 trillion, against a target of Rs3.083 trillion—a shortfall of about Rs198 billion.
How Each Tax Performed
Income Tax:
The government brought in Rs1.363 trillion from income tax, but this was still Rs96 billion below target. On the brighter side, compared to the same period last year, income tax collection showed an 11% rise (Rs138 billion).
Sales Tax:
Sales tax receipts came in at Rs1.02 trillion. While this was Rs122 billion less than expected, the figure marked a 13% increase (Rs114 billion) over last year.
Federal Excise Duty:
Excise duty fared slightly better, totaling Rs190 billion—just over the quarterly target by Rs2 billion.
Customs Duty:
Customs revenue reached Rs312 billion, which was Rs17 billion higher than the target and reflected a solid 13% jump compared to last year. This is despite cuts in import-related duties announced in the federal budget. Concerns remain that reducing regulatory duties could eventually affect revenues, but so far the Customs Department has outperformed Inland Revenue.
The Bigger Picture
For September alone, the FBR had set a target of Rs1.383 trillion, but actual collections stood at Rs1.229 trillion. Growth during the quarter hovered at just 11%, even though refunds were kept relatively tight. Compared to Rs147 billion paid out in refunds last year, the FBR processed Rs157 billion this time around.
In short, while collections are showing year-on-year improvement, the FBR continues to miss its ambitious quarterly targets, highlighting the challenge of balancing higher revenue goals with economic realities.
