By Staff Reporter
ISLAMABADA: The tax authority fell short of its first-quarter revenue goal by Rs199 billion, battered by sluggish domestic sales taxes and lower collections from utility bills amid floods and a shift to solar power.
The Federal Board of Revenue (FBR) collected Rs2.884 trillion in the July-September period, missing the Rs3.083 trillion target, according to provisional data released on Tuesday. Still, the haul rose 13% from Rs2.558 trillion a year earlier. September proved the weakest month, with collections at Rs1.228 trillion — Rs155 billion below the Rs1.384 trillion mark. That represented an 11% gain from Rs1.105 trillion in the same month last year.
Domestic sales taxes suffered from slowed business activity after widespread flooding, plus reduced taxable utility use. A growing reliance on solar energy and persistent power outages further crimped taxes from electricity and gas bills.
Income taxes totalled Rs1.363 trillion, undershooting the Rs1.459 trillion target by Rs96 billion, though up 11% from Rs1.225 trillion a year ago. Sales taxes came in at Rs1.019 trillion, missing the Rs1.141 trillion goal by Rs122 billion, with a 13% year-over-year increase from Rs905 billion. Customs duties beat expectations, climbing to Rs312 billion against a Rs295 billion target — a 13% rise from Rs276 billion last year. Federal excise duties hit Rs190 billion, topping Rs188 billion aim and surging 26% from Rs151 billion.
The FBR issued Rs157 billion in refunds and rebates, up from Rs147 billion a year earlier. It received about 4 million income tax returns through September’s end. In the prior fiscal year, the FBR missed its revised target by Rs163 billion, gathering Rs11.737 trillion versus Rs11.9 trillion planned — yet marking a 26.2% jump from Rs9.301 trillion the year before. To fulfill IMF program pledges, the government rolled out Rs1.05 trillion in revenue measures for the current budget, including Rs655 billion from new taxes and Rs400 billion via tougher enforcement.
The full-year target stands at Rs14.131 trillion. The plan focuses on widening the tax net, promoting equitable contributions and bolstering compliance through digital tools, carbon taxes and broader oversight of e-commerce and digital deals to match international norms. The FBR anticipates an extra Rs200 billion from super tax collections next month, potentially easing the early shortfall.
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