ISLAMABAD: The Federal Board of Revenue (FBR) has collected over Rs103 billion from exporters during the first seven months (July to January) of the ongoing fiscal year 2025-26, according to provisional official data.
The FBR collected Rs103.29 billion in withholding and advance income tax from exporters during the period. However, the total collection showed a decline of 3.57% compared to Rs107 billion collected in the same period of the previous fiscal year.
Under the current tax system, exporters are paying 2% withholding tax after the withdrawal of the Final Tax Regime (FTR) through the Finance Act, 2024. The tax is collected under Section 154 and Section 147(6C) of the Income Tax Ordinance, 2001.
Data showed that advance income tax under Section 147(6C) slightly declined by 1% to Rs51.84 billion, compared to Rs51.12 billion collected in the same months last year. Meanwhile, tax collection under Section 154 fell by 8% to Rs51.45 billion, down from Rs56 billion in the corresponding period of the previous fiscal year.
The decline in tax collection is linked to a fall in Pakistan’s exports, which dropped by 6% to Rs5.11 trillion during the first seven months of FY26, compared to Rs5.45 trillion a year earlier.
Following the removal of the FTR, exporters are now facing a 100% increase in tax payments, as they are required to pay both minimum and adjustable advance tax. Under the revised law, withholding agents collect 2% tax on export proceeds, including 1% minimum tax under Section 154 and 1% advance adjustable tax under Section 147(6C).
