FBR Reports Rs96 Billion Shortfall in Revenue Collection for FY27

ISLAMABAD: The Federal Board of Revenue (FBR) announced on Saturday that it collected Rs4.089 trillion during the first four months (July-October) of the current fiscal year (FY27), falling short of its target of Rs4.185 trillion by Rs96 billion.

The shortfall was primarily due to negative growth in income tax collection, alongside marginal growth in customs duty receipts during October. Both income tax and customs duty collections did not meet their respective targets for the period under review, highlighting ongoing challenges in revenue generation.

Despite the shortfall, higher-than-expected sales tax receipts emerged as a significant driver of overall revenue collection. Sales tax and Federal Excise Duty (FED) collections exceeded their targets during the four-month period, contributing to a modest overall revenue growth of 6 percent compared to Rs3.840 trillion collected during the same period last year.

On a monthly basis, revenue collection reached Rs1.003 trillion in October 2026, falling short of the target of Rs1.132 trillion by Rs102 billion. The FBR received 7.66 million tax returns by October 31, marking a 28.93 percent increase year-on-year. Moving forward, the FBR will need to address the underlying issues affecting income tax and customs duty collections to meet future targets.