ISLAMABAD (MNN); The Federal Board of Revenue (FBR) collected Rs1.015 trillion in taxes during January 2026, registering a robust 16 per cent increase compared to the previous month and exceeding the average growth rate of 10 to 11 per cent recorded over the past six months, according to official data.
The strong performance indicates a positive revenue trend for the remaining months of the current fiscal year, largely supported by a significant rise in direct tax collection and steady improvement in indirect taxes.
In a statement, the FBR said January’s revenue outcome reflects a strategically important fiscal development, marked by a notable surge in direct taxes, moderate growth in indirect and excise duties, and an overall healthy improvement in tax collection.
Income tax receipts rose sharply to Rs483 billion, compared to Rs381 billion collected in the same month last year, representing a 26 per cent year-on-year increase. The FBR attributed this growth to structural reforms, enhanced enforcement measures and coordinated efforts to recover revenues previously locked in litigation.
Sales tax collection amounted to Rs360 billion in January, up from Rs322 billion a year earlier, showing an increase of 12 per cent. The FBR said the improvement corresponds with signs of recovery in large-scale manufacturing, calling it an encouraging development for revenue generation.
The tax authority said January’s results validate its reform-driven transformation strategy, which focuses on digitalisation and targeted enforcement to improve compliance, broaden the tax base and strengthen trust between taxpayers and the revenue administration.
According to the FBR, improved performance in direct taxes also points to a gradual shift towards greater voluntary compliance, which could yield further gains in the coming months.
On a cumulative basis, the FBR collected Rs7.176 trillion during the first seven months of FY2026, compared to Rs6.490 trillion in the corresponding period last year.
Expressing optimism, the FBR said sustained recovery in large-scale manufacturing would help achieve the annual revenue targets. “Team FBR remains fully committed to maintaining this growth momentum in the remaining months of the fiscal year,” the statement added.
