Key Points
- Officials said direct, indirect and excise tax streams all improved compared to the previous year.
- The performance offers cautious optimism for meeting broader fiscal targets amid structural reform efforts.
ISLAMABAD: Pakistan’s Federal Board of Revenue on Sunday reported a significant uptick in tax revenue for January 2026, with provisional collections rising to approximately Rs 1,015 billion, reflecting a broad‑based improvement across key tax categories.
According to a statement available on the FBR website, the January 2026 revenue total represented a roughly 16 per cent increase compared with the same month last year. The collection exceeded the 6‑month average growth rate of 10 to 11 per cent, signalling a potential positive trajectory for the remaining months of the current fiscal year.
Officials highlighted that income tax receipts showed the most pronounced growth, rising to Rs 483 billion from Rs 381 billion in the corresponding month in the last year. At the same time, sales tax collections expanded to approximately Rs 360 billion compared to Rs 322 billion, indicating gains in direct and indirect tax streams.
The Board attributed the stronger performance to a combination of enhanced enforcement measures, wider tax net coverage and efforts to resolve historically lagging collections tied up in litigation.
The provisional figures also reflect the ongoing impact of the Federal Board of Revenue’s reform‑driven transformation plan, which emphasises digitalisation of compliance systems and improved taxpayer engagement.
Cumulative tax revenues for the first seven months of the current fiscal year now stand at about Rs 7,176 billion, up from around Rs 6,490 billion in the same period last year, underscoring a modest overall recovery in revenue mobilisation even as challenges persist.
Analysts say the revenue performance in January provides a measure of relief for policymakers facing significant budgetary pressures. However, achieving the full-year targets will still depend on sustained economic activity and continued improvement in compliance and reforms.
