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

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 FY27.

Unlike the previous fiscal year, when the tax authority struggled to meet its revised goal, the FBR achieved its revised target, according to provisional revenue figures released on Tuesday.

Three factors contributed to slower revenue growth during FY26: widespread floods, the conflict in the Middle East and weaker economic activity.

In June, the FBR collected Rs1.770tr against a revised target of Rs1.753tr for the month, exceeding the goal by Rs17bn. The collection also increased by 18pc year-on-year compared with Rs1.506tr in the corresponding month last year.

The government had initially set a revenue collection target of Rs14.131tr for FY26, which was later revised down to Rs12.983tr to account for emerging shortfalls in consultation with the IMF. The revision represented a gap of about Rs1.127tr.

The FBR issued Rs598bn in refunds and rebates to taxpayers during FY26, up from Rs493bn a year earlier, representing an increase of 21.3pc.

Income tax collection reached Rs6.579tr in FY26, exceeding the revised target of Rs6.528tr by Rs51bn. It also increased by 14pc from Rs5.792tr collected in the corresponding period last year.

Sales tax collection totalled Rs4.254tr, falling Rs1bn short of the revised target of Rs4.255tr. However, it increased by 9pc from Rs3.902tr last year.

Customs duty collection stood at Rs1.331tr, against the target of Rs1.349tr, resulting in a shortfall of Rs18bn. It nevertheless grew by 4pc from Rs1.285tr in FY25. Federal excise duty collection reached Rs840bn, falling short of the target of Rs851bn. It increased by 10pc from Rs767bn collected last year.

Published in Dawn, July 1st, 2026