The federal government has renewed its call for stricter tax enforcement and faster expansion of the tax base, as Finance Minister Senator Muhammad Aurangzeb urged the Federal Board of Revenue to further intensify compliance measures following a record-breaking revenue performance in December 2025. The development comes as the government continues to push its fiscal reform agenda, with a strong emphasis on enforcement, digitisation, and broadening the tax net.
According to an official statement released on Friday, the finance minister commended FBR field formations for delivering the highest tax collection ever recorded in the month of December. He described the performance as a strong endorsement of the government’s sustained focus on improving compliance, strengthening enforcement mechanisms, and digitising the economy. The achievement, he noted, reflects growing effectiveness across the tax administration system.
Addressing Team FBR and senior officials from field formations through a video link conference, Aurangzeb highlighted the progress achieved over the past 18 months. He said the December 2025 figures were particularly encouraging and demonstrated that the reform measures introduced during this period are beginning to yield tangible and sustainable outcomes. According to the finance minister, the momentum achieved must now be carried forward through continued vigilance and institutional discipline.
He emphasized that the government’s broader strategy of promoting a cashless economy, encouraging digital transactions, and enhancing enforcement without disrupting legitimate business activity is producing visible results. The finance minister stressed that balancing enforcement with economic activity remains central to maintaining growth while improving revenue mobilisation.
In line with this policy direction, the FBR collected Rs1,427.1 billion in December 2025, achieving 99 percent of its monthly target of Rs1,446 billion. The statement noted that this marks the highest revenue collection ever recorded for the month of December in Pakistan’s history. The result underscores improvements in tax compliance and enforcement across multiple revenue streams.
The Inland Revenue Service played a leading role in the strong performance, collecting Rs1,308 billion against a target of Rs1,310 billion, achieving 99.8 percent of its assigned goal. The data also highlights a sharp month-on-month increase in revenue, with overall tax collection rising by 59 percent from Rs898 billion in November to Rs1,427.1 billion in December.
This growth was recorded across all major tax heads, reflecting a broad-based improvement rather than reliance on a single revenue source. Income tax collection showed the most significant increase, more than doubling during the month. It rose by 107 percent, from Rs402 billion in November to Rs831.5 billion in December. Sales tax collection also recorded a notable rise of 25 percent, reaching Rs403.7 billion.
Other tax categories posted steady growth as well. Federal Excise Duty collection increased by 6 percent to Rs72.8 billion, while customs duty collection grew by 15 percent to Rs118.9 billion. The government views these gains as evidence of improved monitoring, enhanced data-driven enforcement, and stronger coordination within the tax administration.
The statement further noted that under the continuous oversight of the FBR Board, and in alignment with the finance ministry’s reform roadmap, the results signal a decisive shift toward stronger compliance, better enforcement, and increased institutional accountability. Officials believe these improvements are essential for restoring confidence in the revenue system and ensuring sustainable growth in tax receipts.
Concluding his address, the finance minister urged FBR field formations to further step up their efforts and focus on initiatives aimed at deepening and widening the tax net. He reiterated that improving compliance and enforcement remains the only sustainable way to reduce the tax burden on the formal sector and distribute it more equitably across the economy.
Aurangzeb expressed confidence that through continued professionalism, diligence, and effective enforcement, Team FBR will play a central role in achieving the national objective of sustainable revenue generation. As the government moves forward with its fiscal consolidation agenda, tax administration performance is expected to remain a critical pillar of economic stability and reform.
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