FBR records Rs684bn tax shortfall in first 10 months of current fiscal year

• Sales tax at import stage dropped sharply, widening shortfall gap.
• FBR must collect Rs3,718bn in remaining two-month period.
• Gulf War impact further slowed imports, overall tax collection.
  

ISLAMABAD: The Federal Board of Revenue (FBR) has recorded a tax shortfall of Rs684 billion, as it collected Rs10,261 billion during the first 10 months (July–April) of the current fiscal year, against the assigned target of Rs10,945bn, The News reported on Friday.

The Gulf War has further aggravated the revenue shortfall as official data shows that the Sales Tax at the import stage has nosedived, making it harder for the FBR to achieve the desired results.

The FBR will have to collect Rs3,718bn in the remaining two months (May and June) of 2026 to materialise the revised target of Rs13,979bn by the end of June 2026.

In April 2026, the FBR made a collection of Rs956bn so far against the assigned target of Rs1,029bn, witnessing a revenue shortfall of Rs73bn in achieving the desired tax collection target.

If the FBR’s tax collection crossed Rs13,000bn mark and touched Rs13,200bn, it should be considered an achievement on the part of the tax machinery. The FBR had made a request to the IMF for slashing the annual target from Rs13,979bn to Rs13,400-13,500bn but the Fund had flatly refused to accommodate the demand.

The Gulf War has negatively impacted the revenue performance of FBR as imports decreased and economic activities also halted, resulting in shrinking revenue collection, said an FBR official.

According to provisional figures, the FBR collected Rs5,142bn under Income Tax during the first 10 months, along with Rs3,825.5bn in Sales Tax, Rs672.9bn in Federal Excise Duty, and Rs1,119.5bn in Customs Duty.

Total gross collection stood at Rs10,760.6bn out of which the FBR paid refunds of Rs498.9bn, so the net collection remained Rs10,261.7bn in the first 10 months of the current fiscal year.