Tax collection falls short of plan; FBR revenue collection shortfall increases to Rs868 billion

The Federal Board of Revenue (FBR) has registered a revenue shortfall of Rs868 billion in the first 11 months of the fiscal year 2025-26.

The tax office collected Rs11.227 trillion for July to May against a revised target of Rs12.095 trillion leaving a huge gap.

The expanding difference is attributed to two key issues, according to the reports: slower economic activity due to the ongoing Gulf conflict and the impact of the longer Eid festivities. Revenue shortfall reached Rs 184 billion in only May alone.

The FBR has collected Rs966 billion in May on a provisional basis against the monthly target of Rs1.15 trillion. Officials are still hopeful that once changes are made, the final tally for the month could be a little better.

To fulfil the revised yearly income target of Rs13.979 trillion by June 30, the FBR will have to collect almost Rs2.752 trillion in June – a daunting undertaking considering the current trend.

The tax collection target was originally set at Rs14.13 trillion by the Parliament but was then cut down to Rs13.979 trillion after an agreement with the International Monetary Fund (IMF).

As the fiscal year comes to a finish, the FBR appears to be on track for a total shortfall around Rs1 trillion. Crossing the Rs13 trillion collection mark would be a significant achievement in the current economic scenario, officials feel.