FBR exceeds July tax collection target

ISLAMABAD: The Federal Board of Revenue (FBR) has successfully met and surpassed its tax collection target for the first month of the current fiscal year, ARY News reported citing sources.

According to sources, the FBR collected Rs 755 billion in July, exceeding the assigned target of Rs 748 billion.

This performance reflects the government’s renewed focus on revenue generation and tax compliance.

Breakdown of the July collections shows that Rs 324 billion was collected under income tax, while sales tax collections stood at Rs 353 billion.

Additionally, Rs 46 billion was generated through federal excise duty, and Rs 113 billion came from customs duty.

For the ongoing fiscal year, the FBR has been given an ambitious annual tax collection target of Rs 14,131 billion.

Sources emphasised that achieving monthly tax goals is crucial, as it is one of the primary conditions set by the International Monetary Fund (IMF) under the existing financial support program.

The higher-than-expected revenue performance in July is seen as a positive indicator for Pakistan’s economy as it seeks to stabilise its fiscal position and maintain its commitments to international lenders.

Also Read: FBR Tax Collection 2024-25 surpasses Rs. 1 trillion

Earlier, in a report by the Federal Board of Revenue (FBR), a total FBR tax collection of Rs. 1,017.8 billion for the fiscal year 2024-25 has been mentioned, according to written feedback by the Ministry of Finance, submitted in the Senate.

This is a key achievement in Pakistan’s income-generating efforts, with FBR tax collection presenting remarkable growth across the main categories.

According to the Ministry of Finance, from July 2024 to June 2025, income tax totalled Rs. 628.3 billion, while sales tax collections touched Rs. 389.5 billion.

In the month of June 2025, the highest income tax collection of Rs. 125.9 billion was recorded, highlighting an impressive finish to the fiscal year.

The FBR also broadened its tax revenue base and added 280,197 new filers to the system. The number of return filers rose to 1,034,143, from 841,071 in total last year.

Set target for the income tax for the year 2024-25 was Rs. 480 billion, whereas the sales tax target was Rs. 400 billion. Fortunately, both targets were achieved.

With regard to sales tax refunds, the FBR paid Rs. 363.7 billion during FY 2024-25. In the last five years, the total accumulated refunds have escalated to Rs. 1,472.1 billion.