Islamabad, January 31, 2026 — The Federal Board of Revenue (FBR) on Saturday announced that tax collection reached Rs7.18 trillion during the first seven months (July–January) of the ongoing fiscal year 2025-26, reflecting a strong growth trajectory supported by reform-driven measures.
According to official figures, FBR recorded a 10.5% increase in tax revenues compared to Rs6.49 trillion collected in the corresponding period of the previous fiscal year. The authority also reported a robust performance in January 2026, with provisional tax collection standing at Rs1,015 billion, up from Rs873 billion in January last year. This represents a notable 16% year-on-year growth, exceeding the six-month average growth rate of 10–11% and signaling an encouraging outlook for the remaining months of FY26.
A breakdown of January’s performance shows a substantial rise in direct taxes, underscoring the impact of enhanced enforcement and reform initiatives. Income tax collection surged to Rs483 billion from Rs381 billion in the same month last year, marking an impressive 26% increase. The FBR attributed this improvement to stronger compliance, recovery of revenues previously stuck in litigation, and improved enforcement mechanisms.
Sales tax collection also posted positive growth, reaching Rs360 billion in January compared to Rs322 billion last year, an increase of 12%. This growth reflects early signs of recovery in large-scale manufacturing (LSM), which remains a key driver of indirect tax revenues.
The FBR stated that January’s results validate its reform and transformation agenda, particularly the use of digital infrastructure and data-driven enforcement to expand the tax base and strengthen voluntary compliance. The revenue authority expressed optimism that continued recovery in economic activity, especially in the manufacturing sector, will support achievement of its annual revenue targets, as it seeks to sustain this momentum in the months ahead.