ISLAMABAD: The Federal Board of Revenue (FBR) announced on Wednesday that it collected Rs3.083 trillion in the first quarter (July-September) of 2026-27, exceeding its target of Rs3.053 trillion by Rs30 billion.
Higher-than-expected sales tax receipts were the main driver of the achievement. Although the sales tax and Federal Excise Duty (FED) target was exceeded, income tax and customs duty collections fell short during the three-month period.
Overall revenue posted modest growth of 7pc compared to Rs2.889tr collected in the same period last year.
On a monthly basis, the revenue collection reached Rs1.360tr in September as against the projected target of Rs1.343tr, exceeding the target by Rs17bn. The revenue collection grew 11pc over last year’s collection of Rs1.229tr in September 2025.
The FBR collected over Rs13tr in FY26, exceeding the downwardly revised target of Rs12.983tr by over Rs21bn. The government has projected a target of Rs15.264tr for FY27.
The FBR issued Rs203bn in refunds and rebates to taxpayers during July-September FY27, up from Rs159bn. Income tax collection reached Rs1.437tr in 3MFY27, falling short of the target of Rs1.484tr by Rs47bn. However, it recorded a growth of 5pc from Rs1.365tr collected in the same period last year.
Sales tax collection totalled Rs1.137tr, exceeding the Rs1.051tr target by Rs86bn. However, it increased by 11pc from Rs1.020tr last year.
Higher inflation is boosting domestic sales tax revenues, particularly due to surging petroleum product prices. As fuel costs rise, not only does the Petroleum Development Levy (PDL) increase, but the knock-on effect also drives up the prices of other goods, generating additional sales tax collections.
Customs duty collection stood at Rs312bn in 3MFY27 against the target of Rs320bn, resulting in a decline of Rs8bn. Federal excise duty collection reached Rs197bn, against the target of Rs198bn. It increased by 3pc from Rs191bn collected last year.
Higher-than-expected receipts from the petroleum development levy also helped the government offset the shortfall in revenue collection.
Published in Dawn, October 1st, 2026
