ISLAMABAD: The Federal Board of Revenue (FBR) has rejected speculation regarding a large tax shortfall, stating that its overall revenue performance remains stable and in line with revised fiscal targets.
According to FBR Advisor Khurram Shahzad, the perception of an Rs 864 billion tax shortfall is misleading, as it is being calculated against an earlier annual target of Rs 14,130 billion.
He clarified that following consultations with the International Monetary Fund (IMF), the revenue target was revised to around Rs 13,000 billion, making comparisons with the original figure inaccurate.
The advisor said that fluctuations in revenue collection are part of normal economic adjustments due to inflation and changes in import volumes, adding that the FBR’s performance remains strong under the revised framework.
Official data shows that the FBR collected Rs 966 billion in May 2026, reflecting a 7 percent year-on-year increase, although the figure remained Rs 184 billion below the monthly target of Rs 1,150 billion. On a month-on-month basis, collections posted a modest 1 percent increase, indicating limited growth momentum.
Over the first eleven months of the fiscal year 2025–26, total tax collection reached Rs 11,227 billion, which remains Rs 868 billion below the revised target of Rs 12,095 billion for the period.
Despite the shortfall against projections, officials argue that the overall trend reflects steady growth and improved compliance, rather than a revenue crisis. They further stated that the June 2026 target of Rs 1,727 billion remains achievable based on current trends.
Meanwhile, sources said the government is considering reducing transaction taxes in the real estate sector in the upcoming budget to stimulate market activity and support construction-related growth.
Officials have also reportedly conveyed the proposal to the International Monetary Fund (IMF), arguing that lower transaction costs could improve market liquidity and ultimately help broaden the tax base through increased economic activity.
