The Federal Board of Revenue (FBR) collected Rs. 3,083.5 billion during the first quarter of fiscal year 2026-27, exceeding its target of Rs. 3,053 billion by around Rs. 30 billion, provisional figures show.
The collection was 7 percent higher than the Rs. 2,889 billion collected in the same period last year, despite income tax rate cuts introduced from July 1.
Gross revenue before refunds reached Rs. 3,286.7 billion, compared with Rs. 3,047 billion a year earlier, marking an increase of about 8 percent.
September
FBR collected Rs. 1,360.7 billion in net revenue during September against a monthly target of Rs. 1,343 billion.
September’s collection was around 11 percent higher than the Rs. 1,229 billion collected in the same month last year.
The first-quarter target and the September target were both exceeded by around 1 percent.
Refunds
The higher collection came alongside increased tax refunds.
FBR paid Rs. 203.2 billion in refunds during the first quarter, up 28 percent from Rs. 159 billion a year earlier.
Sales tax refunds increased from Rs. 112 billion to Rs. 130 billion, while income tax refunds rose from Rs. 32 billion to Rs. 51 billion.
September refunds stood at Rs. 47 billion compared with Rs. 35 billion in the same month last year.
Income Tax
Income tax collection increased 5 percent to Rs. 1,437 billion from Rs. 1,365 billion a year earlier. It remained slightly below its head-wise target.
The slower growth came after the government reduced several income tax rates in the June budget.
For salaried taxpayers, rates were reduced across several income brackets, while the 9 percent surcharge on salaries above Rs. 10 million was abolished.
The government also removed super tax slabs for businesses earning between Rs. 150 million and Rs. 500 million and reduced the rate above Rs. 500 million from 10 percent to 8 percent for most sectors.
Withholding tax rates on property transactions were also reduced.
Despite the lower rates, income tax collection continued to grow, which officials attribute partly to a wider tax base and improved compliance.
Sales Tax
Sales tax emerged as the main contributor to the increase in revenue.
Net sales tax collection rose 11 percent to Rs. 1,137 billion from Rs. 1,020 billion last year and exceeded its target by around 8 percent.
Gross sales tax collection increased 12 percent to Rs. 1,266 billion from Rs. 1,131 billion.
Of the roughly Rs. 194 billion increase in net revenue over last year, sales tax contributed around Rs. 117 billion, while income tax contributed about Rs. 72 billion.
Federal excise collection increased 3 percent to Rs. 197 billion, while customs duty remained broadly unchanged at Rs. 312 billion.
FBR’s annual tax collection target for fiscal year 2026-27 is Rs. 15.264 trillion.
These figures are provisional and will be finalized after the first-quarter books are closed.
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