ISLAMABAD: Sindh has emerged as the top-performing province in sales tax collection during the first quarter (July–September) of the fiscal year 2025-26, according to official data released by the Ministry of Finance.
Sindh collected Rs68.4 billion in sales tax on services during the period, up from Rs58 billion in the same quarter of the previous year — reflecting an 18% growth. This strong performance reinforces Sindh’s position as a key contributor to the country’s overall revenue stream.
In terms of growth rate, however, Punjab ranked first with an impressive 27% increase, collecting Rs65 billion in Q1 FY26 compared to Rs51 billion in the corresponding quarter last year. The steady improvement highlights the effectiveness of Punjab’s digitization and enforcement measures in tax administration.
Khyber Pakhtunkhwa posted a 14.4% growth, reaching Rs10.3 billion, while Balochistan recorded a 26.3% rise, collecting Rs5.3 billion during the same period, up from Rs4.37 billion a year earlier.
Overall, the four provinces collectively generated Rs149 billion in sales tax revenue during Q1 FY26 — a 22% year-on-year increase compared to Rs122 billion collected in Q1 FY25.
The finance ministry noted that improved compliance, expanding digital tax systems, and enhanced coordination among provincial revenue authorities have played a vital role in achieving this robust growth momentum across Pakistan’s tax landscape.
