Islamabad, January 28, 2026 – The Federal Board of Revenue (FBR) has collected withholding tax over Rs3 trillion during the first half (July–December) of fiscal year 2025-26 (1HFY26), reflecting a notable improvement in revenue mobilization despite mixed performance across various withholding tax heads.
According to provisional figures, total FBR collections for the first six months of FY26 stood at Rs3.067 trillion, compared to Rs2.824 trillion in the same period last fiscal year, showing an overall growth of 9 percent. The increase has largely been driven by higher income tax receipts and improved enforcement measures.
During December 2025 alone, FBR collected Rs833.2 billion, registering a 5.17 percent increase compared to December 2024. Several withholding tax categories posted strong growth, particularly taxes collected under sections related to banking transactions, dividends, contracts, imports, electricity bills, and telecom services.
Notable gains were recorded under withholding tax on contracts and services, commercial imports, and banking sector transactions, indicating increased economic activity and better compliance. Collections under workers’ welfare-related heads, including WPPF and WWF, also surged sharply during the review period.
However, the data shows declines in some withholding tax heads, including advance tax categories, reflecting sector-specific slowdowns and policy adjustments. A few tax heads also showed flat or negligible collections due to exemptions, adjustments, or low transaction volumes.
Despite these mixed trends, the FBR’s cumulative performance during 1HFY26 remains positive, with revenue growth aligned with the government’s broader fiscal consolidation efforts. Officials expect collections to improve further in the second half of the fiscal year, supported by enforcement drives, digital monitoring, and anticipated economic recovery.
The government has repeatedly emphasized the importance of expanding the tax base and enhancing documentation to ensure sustainable revenue growth in the coming months.