The Federal Board of Revenue (FBR) said Friday that it collected Rs820 billion during the first month of fiscal year 2026-27, surpassing its target of Rs780 billion by Rs40 billion. The higher collection was mainly driven by better-than-expected sales tax, federal excise duty and customs collections.
However, the FBR failed to meet its income tax collection target for July FY27.
In fiscal year 2025-26, the FBR collected more than Rs13 trillion, exceeding its revised target of Rs12.983 trillion by over Rs21 billion. Revenue collection in July FY27 increased 8% to Rs820 billion, compared with Rs756 billion collected during the same month last year.
The government has set an annual revenue collection target of Rs15.264 trillion for FY27. During July FY27, the FBR issued Rs99 billion in refunds and rebates to taxpayers, up Rs14 billion from Rs85 billion issued during the same period last year.
Income tax collection stood at Rs308 billion in the first month of FY27, falling short of the Rs323 billion target by Rs15 billion. However, it increased 2% from Rs301 billion collected during the same period last year.
Sales tax collection reached Rs360 billion, exceeding the target of Rs305 billion by Rs55 billion. It also increased 18% from Rs305 billion collected last year.
Officials said higher inflation contributed to increased sales tax collection, particularly due to rising petroleum prices. As fuel costs increase, the petroleum development levy (PDL) also rises, while higher prices of other goods generate additional sales tax revenue.
During the first month of the fiscal year, sales tax receipts recorded 18% growth, reflecting higher-than-expected inflation across the country.
Customs duty collection reached Rs105 billion against a target of Rs104 billion, exceeding it by Rs1 billion. It also increased 1% from Rs104 billion collected in FY26.
Federal excise duty collection stood at Rs48 billion, slightly above the target of Rs47 billion. It increased 3% from Rs46 billion collected during the same period last year.
The government also received higher-than-expected revenue from the petroleum development levy, which helped offset shortfalls in other areas.
The increase in PDL revenue was mainly due to historically high levy rates, with the government charging up to Rs120 per liter on petrol.
Unlike general sales tax on petroleum products, which is collected by the FBR and shared with provinces under the National Finance Commission award, PDL revenue goes entirely to the federal government. Currently, petroleum products do not carry GST.
