Four-month revenue target missed by Rs96bn
ISLAMABAD: The Federal Board of Revenue (FBR) announced on Saturday that it had collected Rs4.089 trillion during the first four months (July-October) of the current fiscal year (FY27), falling short of its target of Rs4.185 trillion by Rs96 billion.
The shortfall was attributed mainly to negative growth in income tax collection, followed by marginal growth in customs duty receipts during October. Both income tax and customs duty collections remained below their respective targets for the period under review.
Higher-than-expected sales tax receipts were the main driver of revenue collection. Sales tax and Federal Excise Duty (FED) collections exceeded their respective targets during the four months of the current fiscal year.
Overall revenue collection posted modest growth of 6 per cent compared to Rs3.840 trillion collected during the same period last year.
FBR receives 7.66m tax returns by Oct 31, up 28.93pc year-on-year
On a monthly basis, revenue collection reached Rs1.003 trillion in October 2026, against the target of Rs1.132 trillion, falling short by Rs102 billion. The collection recorded growth of 5pc over Rs951 billion collected in October 2025.
Meanwhile, the FBR has not extended the deadline for filing tax returns. It received 7.660 million returns by October 31, compared to 5.941 million during the same period last year, showing an increase of 28.93pc.
In FY26, the FBR collected more than Rs13 trillion, exceeding the downwardly revised target of Rs12.983 trillion by over Rs21 billion. Sales tax and FED collections exceeded their targets, while income tax and customs duty collections fell short of their respective targets.
The government has set an annual revenue collection target of Rs15.264 trillion for FY27.
The FBR issued Rs265 billion in refunds and rebates to taxpayers during July-October FY27, compared to Rs206 billion during the corresponding period last year, representing an increase of 28.64pc.
Income tax collection reached Rs1.861 trillion during the first four months of FY27, falling short of the target of Rs2.009 trillion by Rs148 billion. However, it recorded growth of 4pc compared to Rs1.797 trillion collected during the corresponding period last year.
Sales tax collection totalled Rs1.524 trillion, exceeding its target of Rs1.448 trillion by Rs76 billion. It also increased by 12pc from Rs1.360 trillion collected during the same period last year.
Higher inflation is boosting domestic sales tax revenues, particularly amid rising petroleum product prices. As fuel costs increase, not only does the Petroleum Development Levy (PDL) rise, but the resulting increase in the prices of other goods also generates additional sales tax revenue.
Customs duty collection stood at Rs427bn against the target of Rs449bn, resulting in a shortfall of Rs22bn. It recorded a marginal increase of Rs4bn compared to Rs423bn collected last year.
Federal Excise Duty collection reached its target of Rs278bn. It increased by 7pc from Rs260bn collected during the corresponding period last year.
Higher-than-expected receipts from the PDL also helped the government offset the shortfall in revenue collection. The government is using PDL proceeds to compensate for the revenue shortfall.
Unlike general sales tax on petroleum products, which is collected by the FBR and shared with the provinces under the National Finance Commission (NFC) Award, PDL receipts accrue entirely to the federal government. Petroleum products currently carry no general sales tax.
Published in Dawn, November 1st, 2026
