FBR Misses Rs950B Target, Collects Rs886B

Islamabad, August 30, 2025, 09:50 PM PKT — The Federal Board of Revenue (FBR) has collected a provisional Rs886 billion in August 2025, reflecting a 12% growth but falling short of its Rs950 billion monthly target by Rs64 billion, as per official reports. For the first two months of FY2025-26 (July–August), tax collection hit Rs1.65 trillion against a combined target of Rs1.698 trillion, leaving a Rs47.5 billion gap, with field offices staying open August 30–31 to push collections past Rs900 billion, officials claim.

The FBR targets Rs1.385 trillion for September 2025, needing Rs1.44 trillion to meet the first-quarter goal of Rs3.08 trillion by September 30, amid revenue shortfalls blamed on lower electricity use (Rs86 billion vs. Rs125 billion last year), sluggish industrial activity, and weak enforcement. Income tax reached Rs695 billion, meeting the two-month target, but sales tax lagged at Rs625 billion (Rs65 billion short), federal excise duty hit Rs113 billion (slightly below target) due to beverage levies impacting sales, while customs duty soared to Rs200 billion, exceeding targets with pending cargo clearance. Refund payments dropped to Rs37 billion (from Rs53 billion), with July–August refunds at Rs118 billion, down 11% year-on-year. The annual target of Rs14.13 trillion (20% growth) hinges on enforcement and litigation recovery, hampered by delayed asset-declaration rules and trader deposit issues. Web context on tax collection shows past inconsistencies, while posts found on X reflect concern mixed with hope—some note efforts, others question effectiveness. Critically, the narrative of “revenue growth” may mask structural weaknesses—web data hints at enforcement gaps, and X sentiment suggests distrust in target achievement, pointing to potential risks.