FBR Tax Shortfall Hits Rs 335 Billion in First Half of FY

FBR tax shortfall has reached Rs 335 billion in the first half of the current fiscal year, as the Federal Board of Revenue failed to meet its tax targets.

The Federal Board of Revenue did not achieve its tax collection targets for the first six months of the fiscal year. This marked the fifth straight month of missed targets.

According to FBR sources, the authority set a tax target of Rs 6,489 billion from July to December. It collected only Rs 6,154 billion during this period. FBR met its monthly target only in July 2025.

Read Also: FBR Faces Rs 270 Billion Revenue Shortfall

In December, FBR collected around Rs 25 billion less than the set target. The authority aimed to collect Rs 1,446 billion but received Rs 1,421 billion instead.

Income tax contributed the highest share in December with Rs 828 billion. Sales tax collection stood at Rs 434 billion. Customs duty brought in Rs 123 billion, while federal excise duty crossed Rs 72 billion.

FBR officials said the department paid Rs 38 billion in tax refunds during December. Authorities also revised the annual tax target from Rs 14,130 billion to Rs 13,979 billion. The corporate sector made large payments of Rs 305 billion on the last day of December.

Sources confirmed that the government revised the annual tax target after consultation with the IMF. The IMF will review FBR’s tax performance next week.

Due to the revenue gap, the government may introduce new tax measures in the next quarter. Officials are also considering cuts in government spending to manage the shortfall. Experts warn that lower tax revenue could worsen the budget deficit and affect other economic targets.

The growing FBR tax shortfall continues to raise concerns about fiscal stability and future economic planning.