ISLAMABAD: The Federal Board of Revenue (FBR) has formulated a strategy to meet its revised tax collection target for the second half of the 2025-26 fiscal year, focusing on administrative measures and recovery of stuck-up revenue. On Thursday, FBR Chairman Rashid Mahmood Langrial convened a high-level meeting with Chief Commissioners of Inland Revenue, Chief Collectors of Customs, and senior FBR officials overseeing Inland Revenue and Customs operations to chart the way forward.
The meeting addressed the shortfall in the first half of FY25-26, where the revised target of Rs13,979 billion fell short by Rs328 billion compared to the original target of Rs14,307 billion. Officials discussed recovery strategies, including stricter enforcement, resolution of pending court cases, and other administrative actions to ensure the target is met by March 2026.
FBR sources noted that additional revenue measures were also considered, such as increasing excise duties on fertilisers and pesticides, imposing excise taxes on high-value sugary products, and expanding the sales tax base by moving selected items to the standard rate.
Provisional tax collection for December 2025 stood at Rs1,425 billion, slightly below the monthly target of Rs1,446 billion. Nevertheless, cumulative tax collection for July–December 2025 reached Rs6,169 billion, reducing the overall shortfall to Rs336 billion from the previously projected Rs564 billion.
The meeting commended the role of FBR Member Inland Revenue (Operations) Zubair Bilal, whose leadership significantly contributed to revenue generation and mitigating the shortfall. The FBR is now focused on ensuring the revised target is fully met in the remaining months of the fiscal year.
In a related development, the government has ruled out a mini-budget, noting that approximately 95% of the assigned tax collection target for the first half of FY25-26 has already been achieved. Reports indicate that the FBR met 98.3% of its December 2025 target, reflecting steady progress in revenue mobilisation.
Sources confirmed that the FBR is not pursuing any new revenue measures for January 2026 and no new bills or ordinances are being drafted. The government has assured that, given the strong performance of the FBR in achieving its targets, no additional tax initiatives are under consideration at this time.
The FBR’s strategy underscores a continued focus on administrative efficiency, enforcement, and revenue recovery to meet fiscal objectives while maintaining stability in Pakistan’s taxation framework.
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