Pakistan’s Federal Board of Revenue (FBR) has started the fiscal year 2026-27 on a positive note by collecting Rs. 810 billion in taxes during July, exceeding its monthly revenue target by Rs. 30 billion.
According to provisional figures, the tax authority recorded a 7 percent increase in revenue compared to July last year, when it collected Rs. 757 billion. While the performance surpassed the monthly target, experts believe stronger measures will be needed in the coming months to achieve the government’s ambitious annual revenue goals.
The data shows that income tax collections exceeded Rs. 300 billion during July. However, the figure remained Rs. 23 billion below the target set for the month, highlighting continued challenges in direct tax collection.
Tax experts attributed the shortfall in income tax mainly to advance tax payments received in June and a reduction in withholding taxes on property transactions and salaried individuals following recent tax policy adjustments.
Despite missing the income tax target, higher collections from other tax heads, including sales tax, customs duties, and federal excise duty, helped the FBR surpass its overall monthly revenue goal.
The strong start comes as the FBR faces the challenge of meeting its record annual tax collection target under the FY2026-27 federal budget, with authorities expected to intensify enforcement, expand the tax base, and improve compliance in the coming months.