ISLAMABAD: The Federal Board of Revenue’s tax shortfall widened to Rs610 billion during July–March FY2026, with collections reaching Rs9,307 billion against a target of Rs9,917 billion.
The gap expanded sharply in March, when the monthly shortfall stood at Rs182 billion, taking the cumulative deficit from Rs428 billion in July–February to Rs610 billion for the nine-month period.
Officials said import-related tax collection saw no growth in March, compared to earlier months, as reduced imports affected revenues. Collections linked to imports remained flat after reaching Rs356 billion in February.
Disruptions in LNG supplies also impacted industrial output, particularly in the fertiliser sector, leading to an estimated revenue loss of Rs40 billion during March.
In addition, tax refunds increased to Rs61 billion in March from Rs34 billion in February, further reducing net collections for the month.
Despite the shortfall, overall tax collection grew by 10.6% to Rs8,122.2 billion, supported by higher direct and indirect taxes. Direct taxes rose by 12.2%, while indirect taxes increased by 9.1%, with sales tax up 10%, federal excise duty 14% and customs duty 3.8%.
Provisional collection for March stood at Rs1,185 billion against a target of Rs1,367 billion.
To meet the annual target, the FBR will need to collect Rs4,672 billion during April–June, a requirement that analysts say will be difficult to achieve given current trends.
