Provincial tax revenue rises 23.20% in FY2025-26, led by sales tax on services collection
ISLAMABAD: Pakistan’s four provinces collectively collected Rs1.206 trillion in taxes during fiscal year 2025-26, registering an increase of 23.20% compared with the previous fiscal year, according to data released by the federal Finance Ministry.
According to the Fiscal Operations of Pakistan for FY2025-26, provincial tax revenues increased from Rs978.621 billion in FY2024-25 to Rs1.205649 trillion during FY2025-26.
Sales tax on services remains largest source
Sales tax on services (GST) remained the largest source of provincial tax revenue during FY2025-26.
Collection under this head reached Rs774.785 billion, compared with Rs612.418 billion in the preceding fiscal year.
The figures highlight the significant contribution of services-related taxation to provincial revenue generation and its dominant share of overall provincial tax receipts.
Provincial tax collection breakdown
Revenue from excise duties increased to Rs14.392 billion during FY2025-26 from Rs13.386 billion a year earlier.
Provincial governments collected Rs85.882 billion in stamp duties, up from Rs68.455 billion in FY2024-25.
Similarly, motor vehicle tax collection rose to Rs75.098 billion, compared with Rs53.246 billion during the previous fiscal year.
Revenue classified under other taxes stood at Rs258.492 billion in FY2025-26, compared with Rs231.116 billion in FY2024-25.
| Tax head | FY2025-26 | FY2024-25 |
| Sales tax on services (GST) | Rs774.785bn | Rs612.418bn |
| Excise duties | Rs14.392bn | Rs13.386bn |
| Stamp duties | Rs85.882bn | Rs68.455bn |
| Motor vehicle tax | Rs75.098bn | Rs53.246bn |
| Other taxes | Rs258.492bn | Rs231.116bn |
| Total | Rs1.206trn | Rs978.621bn |
The data shows that sales tax on services remained the dominant component of provincial tax revenues during FY2025-26, accounting for the largest share of the overall collection.
The increase in provincial tax receipts reflects higher collections across major revenue heads and contributed to a substantial rise in total provincial tax revenue during the fiscal year.