FBR faces Rs129bn tax shortfall in first four months of FY2026-27

Despite seeing a 7% rise in tax collection compared to the same period last year, the Federal Board of Revenue (FBR) has witnessed a revenue shortfall of Rs129 billion during the first four months of the current fiscal year from July to October.

During the period from July to October, the FBR collected taxes of Rs4,088.2 billion against the target of Rs4,217 billion, sources said.

The revenue authority has been given a tax collection target of Rs15,264 billion to be achieved by June 2027, officials said. To accomplish this aim, FBR will have to sustain a growth rate of 17%.

Sources stated the FBR collected Rs1,002 billion as taxes in the month of October. On the last day of the month, October 31, Rs27 billion more was collected. As of October 31, the board had received 7.6 million income tax returns.

At the same time, the fixed tax structure for the retailers also has failed to provide the expected effects. Officials said only 1,750 stores have registered under the system, out of an estimated 3.6 million possible non-filer retailers, and only 220 new taxpayers submitted their tax forms.

Sources claimed the FBR has set a target of Rs50 billion collection under the retailers’ plan.

The FBR, officials claimed, has also decided to levy sanctions on the non-filers. The proposed penalty structure has proposed to fine non-filers Rs 10,000 in the first month, Rs 25,000 in the second month and Rs 50,000 in the third month.

The FBR can also seal the commercial premises of retailers who do not come in the tax net.