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Finance Minister Hails Highest Ever December Tax Collection by FBR

Pakistan recorded its highest ever tax collection for the month of December, as the Federal Board of Revenue collected Rs. 1,427.1 billion in December 2025, meeting 99 percent of its monthly target.

The milestone was highlighted by Muhammad Aurangzeb, who praised FBR field formations while addressing officers through a video link conference in Islamabad.

He said the December performance validated the government’s fiscal reform agenda and its focus on compliance, enforcement, and digitisation.

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The December collection was achieved against a target of Rs. 1,446 billion, making it the strongest December performance in Pakistan’s history. Officials said the outcome reflected improved tax compliance and more effective enforcement across the system.

On a month on month basis, tax revenues surged sharply. Collections rose by 59 percent, increasing from Rs. 898 billion in November to Rs. 1,427.1 billion in December, with growth recorded across all major tax heads.

Income tax showed the strongest increase, more than doubling by 107 percent from Rs. 402 billion in November to Rs. 831.5 billion in December.

Sales tax collection increased by 25 percent to Rs. 403.7 billion, while Federal Excise Duty rose by 6 percent to Rs. 72.8 billion. Customs duty collection also grew by 15 percent, reaching Rs. 118.9 billion.

The Inland Revenue Service delivered a particularly strong performance, collecting Rs. 1,308 billion against a target of Rs. 1,310 billion, achieving 99.8 percent of its assigned goal.

The finance minister said the progress achieved over the past 18 months was encouraging and pointed to government measures aimed at digitising the economy, promoting cashless transactions, and strengthening enforcement without disrupting business activity.

He added that continued oversight by the FBR Board and alignment with the Finance Ministry’s reform roadmap were leading to stronger institutional accountability and more sustainable revenue growth.

Concluding his address, the minister urged FBR field formations to intensify efforts to widen and deepen the tax base.

He said improved compliance and enforcement were essential to easing the tax burden on the formal sector and expressed confidence that FBR would continue to play a central role in achieving this national objective.

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Published by
Muhammad Bilal