ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) on Saturday reported a strong pickup in tax collection in January, driven by a sharp rise in direct taxes, as the government seeks to shore up public finances under a reform-led revenue mobilization drive.
The tax authority collected a provisional Rs1.02 trillion ($3.65 billion) in January, up 16% from Rs.873 billion ($3.14 billion) in the same month last year, surpassing the six-month average growth rate of 10-11%, according to an official statement.
“This month’s tax performance reveals a nuanced and strategically significant fiscal outcome, characterized by substantial increase in direct taxation, modest growth in indirect and excise streams and an overall healthy and improved performance in January 2026,” the statement said.
“It also reinforces the credibility of reform-driven revenue mobilization and transformation plan of FBR,” it added.
Income tax collection rose 26% to Rs483 billion ($1.74 billion) from Rs381 billion ($1.37 billion) a year earlier, reflecting what the FBR described as the impact of enforcement measures and efforts to unlock revenue tied up in litigation.
