FBR Misses Original IMF Tax Target By Rs. 978 Billion

The Federal Board of Revenue (FBR) ended fiscal year 2025-26 with a tax collection shortfall of around Rs. 978 billion against the revised annual revenue target set by the IMF.

According to figures compiled by the tax department, the FBR collected Rs. 13.001 trillion during the fiscal year, falling short of the revised target of Rs. 13.979 trillion maintained by the IMF during the May review talks.

The original annual target had been set at Rs. 14.13 trillion by the IMF and the government of Prime Minister Shehbaz Sharif in June last year. However, the target was later revised downward in view of slower-than-expected revenue growth and prevailing economic conditions.

Despite the revision, the FBR was unable to meet the updated target.

Officials attributed the revenue performance to subdued economic activity, lower imports and other macroeconomic factors that affected tax receipts. However, they maintained that the FBR continued enforcement and administrative measures to improve compliance and broaden the tax base.

The revenue authority also processed refunds worth billions of rupees during the fiscal year, particularly for exporters, to facilitate the business community.

A detailed breakup of tax receipts showed that income tax remained the largest contributor, followed by sales tax, customs duty and Federal Excise Duty (FED).

The government is expected to set a higher tax collection target for fiscal year 2026-27, with the FBR likely to intensify enforcement measures and expand documentation efforts to bridge the revenue gap.