FBR misses revenue target by Rs270 billion in four months

The Federal Board of Revenue (FBR) has missed its revenue collection target by around Rs270 billion during the first four months of the current fiscal year (July–October 2025).

According to official data, the FBR collected Rs3.84 trillion in taxes against the target of Rs4.109 trillion. Despite stricter monitoring and enforcement, the gap shows that challenges still exist in expanding the tax base and maintaining steady revenue growth amid a weak economy.

Sources said that Rs205 billion were issued as refunds during this period, which affected the net collection. Officials explained that refunds are part of the regular process, but they can temporarily reduce the total amount collected.

In October 2025, the FBR collected Rs955 billion against a target of Rs1.026 trillion, falling short by more than Rs70 billion.

A breakdown of the collections shows:

• Income tax: Rs438 billion

• Sales tax: Rs345 billion

• Federal excise duty: Rs70 billion

• Customs duty: Rs107 billion

Each category failed to meet its target. Officials said the shortfall was caused by a slower economic recovery, lower imports, and tax exemptions in several sectors. They added that import restrictions have reduced customs and sales tax collections, while overall economic activity remains slow.

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