ISLAMABAD: The Federal Board of Revenue (FBR) has projected customs duty collection of more than Rs410 billion from petroleum product imports during the fiscal year 2026-27, reflecting the government’s expectations of stronger import-related tax revenues under the federal budget.
According to official documents, the projected collection of Rs410 billion represents an increase of approximately 21 percent over the revised estimate of Rs339.35 billion for FY2025-26.
The FBR had originally estimated customs duty collections of more than Rs437 billion from petroleum products for FY2025-26. However, the target was later revised down to Rs339.35 billion after actual collections fell short of initial expectations.
Overall customs duty target raised
For FY2026-27, the FBR has set an overall customs duty collection target of Rs1.65 trillion, around 20 percent higher than the revised estimate of Rs1.37 trillion for the previous fiscal year.
The revised figure also highlights that the original FY2025-26 customs duty target of Rs1.59 trillion was not achieved.
The higher target forms part of the government’s broader revenue mobilisation strategy aimed at strengthening fiscal resources and meeting budgetary objectives.
Imported vehicles among top contributors
Official projections indicate that imported vehicles will remain one of the largest sources of customs duty revenue during FY2026-27.
The FBR expects to collect approximately Rs379 billion from vehicle imports, compared with an estimated Rs313 billion in the preceding fiscal year.
Meanwhile, customs duty on imported electrical machinery is projected at around Rs98 billion, while edible oil imports are expected to generate approximately Rs91 billion.
The tax authority has also forecast customs duty collections of around Rs84 billion from iron and steel imports, with articles of iron and steel contributing an additional Rs29 billion.
Imports of tea and coffee are expected to yield around Rs41 billion in customs duty during FY2026-27.
Revenue strategy
The customs duty projections are based on anticipated import volumes, prevailing tariff structures and expected economic activity during the fiscal year.
The estimates form part of the government’s wider fiscal strategy to strengthen tax collection, improve revenue performance and support budgetary targets outlined in the Federal Budget for FY2026-27.
