Islamabad, February 15, 2026 – The Federal Board of Revenue (FBR) has collected Rs11 billion as advance income tax on foreign payments made through credit cards, debit cards, and prepaid cards during the first seven months (July to January) of fiscal year 2025-26.
Provisional data shows that this collection represents a slight 1% decline compared to Rs11.12 billion collected during the same period last fiscal year. Despite this minor dip, monthly collections in January 2026 recorded a significant 12% year-on-year increase, reaching Rs1.61 billion, up from Rs1.43 billion in January 2025.
The FBR imposes the advance tax under Section 236Y of the Income Tax Ordinance, which charges 5% on persons listed on the Active Taxpayers List (ATL) and 10% on non-ATL persons. The law mandates that every banking company must collect the advance tax at the time of transferring any sum abroad, including transactions made through credit, debit, or prepaid cards with overseas merchants.
Experts say this measure not only helps broaden Pakistan’s tax base but also ensures compliance among taxpayers engaging in foreign transactions. Analysts believe that with the increasing use of digital payments and e-commerce, advance tax collections on foreign card payments are likely to continue contributing significantly to federal revenue in the upcoming months.
The FBR continues to encourage taxpayers to remain compliant and keep their records updated to avoid higher tax rates on foreign payments.