ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs 966 billion in tax revenues during May 2026, representing a 7% year-on-year increase. Despite this growth, collections remained Rs 184 billion below the monthly target of Rs 1,150 billion.
Over the first eleven months of fiscal year 2025–26, the FBR generated total tax revenues of Rs 11,227 billion. However, cumulative collections from July 2025 to May 2026 were Rs 868 billion lower than the revised target set for the period.
The revenue target for the first eleven months of the fiscal year stood at Rs 12,095 billion. While tax receipts recorded a 7% annual increase, the FBR was unable to achieve its projected revenue objectives.
FBR reduces Islamabad property valuation rates by up to 33%
On a month-on-month basis, tax collection in May 2026 posted a modest increase of 1%, indicating limited growth compared with the previous month.
Meanwhile, the federal government is considering reducing transaction taxes on the real estate sector in the upcoming budget to stimulate property market activity and enhance overall tax revenue.
Sources said significant relief is expected for the real estate sector as part of the government’s efforts to promote real estate and construction activities, which are closely linked to employment generation and economic growth.
According to sources, the government has informed the International Monetary Fund (IMF) about its proposal to reduce transaction taxes on property transactions. Officials believe that lower taxes will encourage greater buying and selling activity in the property market, ultimately leading to higher tax collection.
