Pakistan’s tax authority has started the new fiscal year on a stronger-than-expected note after exceeding its revenue target for July.
According to the Federal Board of Revenue (FBR), tax collection reached Rs820 billion during the first month of fiscal year 2026-27. The amount was Rs40 billion higher than the monthly target of Rs780 billion.
Official figures show the stronger performance was driven by higher-than-expected collections from sales tax, customs duty and federal excise duty (FED). However, income tax collection remained below its target during the month.
The latest figures also show year-on-year growth. FBR collected Rs756 billion in July of the previous fiscal year, meaning revenue increased by 8% in July FY27.
Alongside revenue collection, the tax authority issued Rs99 billion in refunds and rebates to taxpayers during July. This was Rs14 billion higher than the Rs85 billion refunded during the same month last year.
The July performance follows a strong finish to FY26, when FBR collected more than Rs13 trillion, exceeding its revised annual target of Rs12.983 trillion by over Rs21 billion.
For the current fiscal year, the federal government has set an ambitious annual revenue target of Rs15.264 trillion. Meeting that goal will depend on sustained tax collection throughout the remaining months of FY27.
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The July figures provide an early indication of revenue performance, although future collections will determine whether the FBR remains on track to achieve its annual target.
