The Federal Board of Revenue (FBR) collected Rs1.722 trillion in taxes during the first two months of fiscal year 2027, exceeding its combined tax collection target by Rs12 billion, according to sources. The revenue authority had set a target of Rs1.710 trillion for July and August 2026, while actual collections during the period reached Rs1.722 trillion. The performance places FBR slightly above its target for the opening two months of FY27 and provides an early indication of tax revenue performance during the new fiscal year.
The two-month collection figure reflects tax revenue generated during July and August 2026. Compared with the corresponding period of the previous year, FBR’s tax collection increased by 5%. The year-on-year improvement indicates that overall revenue collection remained higher despite the monthly shortfall recorded in August. The performance also allowed the tax authority to exceed its combined target for the two-month period, even though collections in the second month were below the amount originally set for August.
During August 2026 alone, FBR collected Rs902 billion in taxes, representing a 2% increase compared with August last year. While the monthly collection recorded year-on-year growth, it remained below the target established for the month. FBR had set an August tax collection target of Rs930 billion, meaning actual collections fell short by Rs28 billion. The monthly shortfall was therefore offset by the overall performance across July and August, allowing the revenue authority to remain above its combined two-month target.
The August collection figure highlights the difference between monthly and cumulative revenue performance. Although FBR did not achieve the Rs930 billion target for August, the authority had already generated sufficient revenue during the opening two months to remain ahead of its combined target. Total collections of Rs1.722 trillion were Rs12 billion higher than the Rs1.710 trillion target, indicating that the revenue authority’s performance during the two-month period remained slightly stronger than the amount required under the fiscal year revenue plan.
The year-on-year increase also indicates continued growth in tax collection during the early part of FY27. FBR’s combined collection during July and August was 5% higher than the amount collected during the same period last year. The increase comes as the government continues to focus on strengthening revenue mobilisation and maintaining tax collection performance as part of its broader fiscal management objectives.
Tax refunds also increased during the first two months of the new fiscal year. FBR issued Rs155 billion in tax refunds during July and August 2026, which was Rs31 billion higher than the amount issued during the corresponding period of the previous year. The increase in refunds means that a larger amount was returned to taxpayers during the period compared with the same period last year, while gross tax collections continued to record year-on-year growth.
The relationship between collections and refunds remains an important part of assessing the revenue authority’s overall performance. While FBR collected Rs1.722 trillion during the first two months, it also issued Rs155 billion in refunds during the same period. The higher refund amount compared with last year reflects increased payments back to taxpayers even as overall tax collection remained above the two-month target.
August’s performance therefore presents a mixed monthly picture within an overall target-beating two-month result. The Rs902 billion collected during the month was 2% higher than August 2025 but Rs28 billion below the Rs930 billion target. However, the combined July and August collection reached Rs1.722 trillion, allowing FBR to exceed the Rs1.710 trillion target by Rs12 billion.
The early FY27 revenue figures will remain important for the government’s fiscal position as the year progresses. FBR’s ability to maintain collection growth while managing tax refunds will influence the pace at which revenue targets are achieved over the coming months. For now, the revenue authority has started FY27 with a 5% year-on-year increase in collections for July and August and a cumulative performance that remains Rs12 billion above its two-month target.
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