FBR Misses August Tax Collection Target by Rs50 Billion Amid Economic Slowdown

Islamabad — The Federal Board of Revenue (FBR) has reported a shortfall of Rs50 billion in tax collection for August 2025, collecting Rs901 billion against a target of Rs951 billion, according to official sources.

The decline has been attributed to multiple economic challenges, including heavy rainfall, widespread flooding, reduced consumption of electricity and gas, and overall sluggish business activity—particularly in the real estate sector.

Despite exceeding its target in July 2025 by collecting Rs762 billion against a goal of Rs750 billion, the FBR has now accumulated a two-month shortfall of Rs35 billion. The total tax collection for July and August stood at Rs1,663 billion, falling short of the Rs1,698 billion target for the period.

To meet the revenue goals set for the first quarter of the fiscal year, the FBR will now need to collect more than Rs1,465 billion in September alone. The target for the first quarter has been revised to Rs3,128 billion, while the ambitious annual collection target for FY2025–26 stands at Rs14,131 billion.

Read more: FBR sets new deadline for July 2025 sales tax return filing

Economic analysts note that meeting these targets will be challenging without a significant recovery in key sectors and an improvement in consumption trends.