KARACHI, April 20, 2026- The Large Taxpayers Office (LTO) Karachi reported record tax collection of Rs2.58 trillion in the first nine months of fiscal year 2025-26, marking a 10% increase compared with the same period last year, official data showed on Monday.
According to provisional figures, the country’s largest tax collection arm had generated Rs2.34 trillion during July–March 2024-25. The latest performance reflects improved revenue mobilisation across key tax categories despite a challenging economic environment.
During the period under review, the LTO Karachi issued more than Rs102 billion in refunds to taxpayers, indicating ongoing adjustments in tax administration and claims settlement.
Direct tax collection remained the strongest contributor, rising 15% to Rs1.46 trillion compared with Rs1.27 trillion in the corresponding period of the previous fiscal year. Officials attributed the increase primarily to higher receipts from super tax, which contributed around Rs97 billion during the nine-month period.
Sales tax collection posted modest growth of 3%, reaching Rs938 billion against Rs913 billion a year earlier. The relatively subdued increase was linked to sluggish domestic economic activity and weaker consumption trends.
Within sales tax, the LTO also issued Rs59 billion in refunds during July–March 2025-26, up 16% from Rs50 billion in the same period last year, reflecting higher refund processing activity alongside collections.
Federal excise duty (FED) also showed strong momentum, rising 17% to Rs180 billion compared with Rs154 billion in the corresponding period last year.
Officials said the overall performance reflected sustained enforcement efforts, improved audit coverage and enhanced compliance measures targeting large taxpayers.
“The growth in collection is the result of focused enforcement actions and better compliance facilitation,” a tax official said, without giving further details.
The LTO Karachi is responsible for collecting revenue from Pakistan’s largest corporate entities, including key sectors such as manufacturing, banking, energy and telecommunications.
Tax experts note that while collections have improved, the reliance on indirect measures such as withholding and super tax highlights continued structural challenges in broadening the tax base.
The Federal Board of Revenue (FBR) has been under pressure to increase revenues amid fiscal consolidation targets agreed with international lenders, making the performance of large taxpayer units critical for overall budget stability.