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Pakistan Lowers Tax Target as FBR Misses First‑Half Goal by Rs336 Billion

An IMF review next week may prompt contingency tax steps if the revenue gap persists.

Overview

  • The FBR collected Rs6,154 billion in July–December 2025 against a target near Rs6,489–6,490 billion, marking a fifth straight monthly miss.
  • December revenue reached Rs1,421 billion versus a Rs1,446 billion target, with Rs828 billion from income tax, Rs434 billion from sales tax, Rs123 billion from customs and over Rs72 billion from federal excise.
  • Refund payments dropped to about Rs38 billion in December from Rs72 billion a year earlier, and roughly Rs305 billion in corporate payments were booked on the last day of the month.
  • The annual collection goal has been cut to Rs13,979 billion from Rs14,130 billion in consultation with the IMF, with parliament yet to approve the revision.
  • Officials signal contingency measures if slippages widen, with reported proposals including higher withholding on cash withdrawals and phone usage, a higher sales tax on solar panels and excise on confectionery, alongside new scrutiny of exporters after a tax regime change.