The Federal Board of Revenue (FBR) recorded provisional collection of Rs. 1,015 billion for January 2026, 16% higher month-on-month than December, surpassing the six-month average growth of 10-11%.
In a statement, the tax body said last month’s tax performance reveals a nuanced and strategically significant fiscal outcome, characterized by substantial increase in direct taxation, modest growth in indirect and excise streams, and an overall healthy and improved performance. It also reinforces the credibility of reform-driven revenue mobilization and transformation plan of FBR, it added.
According to the FBR, income tax collections rose to Rs. 483 billion against Rs. 381 billion the year prior, a growth of 26%. It maintained this reflected the structural impact of the FBR’s reforms, especially its enhanced enforcement measures and coordinated effort to realize collections stuck in litigation. Sales tax collections in January, meanwhile, clocked in at Rs. 360 billion against Rs. 322 billion the previous year, a growth of 12%, reflecting growth in large-scale manufacturing.
The FBR emphasized that January’s collection validated its reform-driven transformation plan. By leveraging digital infrastructure and collection through enforcement measures, FBR is improving compliance, expanding and deepening the tax net, and fostering taxpayer trust. This performance in direct taxes signals emerging behavioral shifts toward greater voluntary compliance, with potential spill over benefits in coming months.
Over the course of the first seven months of the ongoing fiscal year, the FBR has collected Rs. 7,176 billion against Rs. 6,490 in the corresponding period of last year. The FBR has expressed optimism that the growth recovery trends in large-scale manufacturing would continue, helping it achieve revenue targets for the current fiscal year.