By Staff Reporter
ISLAMABAD: The Federal Board of Revenue posted a Rs76 billion shortfall in October tax collections, pushing the cumulative miss for the first four months of fiscal year 2026 to Rs274 billion and raising pressure for austerity measures under its $7 billion IMF bailout.
Provisional data show the tax authority gathered Rs950 billion against a monthly target of Rs1,026 billion last month. That gap widened the first-quarter deficit of Rs198 billion by another Rs76 billion through October, according to FBR figures.
FBR officials expect total tax collection for the month to reach Rs952 billion after final adjustments. For July through October, the FBR collected Rs3.840 trillion versus a Rs4.109 trillion target, leaving a Rs269 billion hole. The government set an ambitious Rs14.13 trillion annual goal for fiscal 2026, though it dialed that back following the second review of its Extended Fund Facility with the International Monetary Fund.
Islamabad pledged contingency revenue measures starting January 1 if collections lag in the July-December half-year. Those steps include hiking goods and services tax on solar panels to 18% from 10%, raising levies on telecoms and boosting federal excise duty on fertilizers and pesticides.
The IMF floated a 1 percentage-point jump in the general sales tax rate to 19%, only for the government to knock it back. Fund staff also shot down Pakistan’s pitch for a flood levy during the review talks.
October’s haul broke down to Rs430 billion in income tax, Rs345 billion in sales tax on imports and local output, Rs70 billion in federal excise duty and Rs109 billion in customs duties. Refunds swelled to Rs48 billion, more than double the Rs19 billion paid out in October 2024.
Performance split across offices. Large Taxpayer Units in Islamabad, Lahore and Karachi all fell short, while Regional Tax Offices in Lahore, Karachi RTO-1 and Gujranwala beat targets. Sialkot and Faisalabad lagged.
The FBR extended the income tax return deadline amid robust turnout. As of October 31, a record 5.9 million returns were filed, up 17.6% from 5 million a year earlier. Some 3.6 million included payments, a 18.6% increase in paying filers. Individuals chipped in nearly Rs69 billion, 15% more than the Rs60 billion last year.
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