The Federal Board of Revenue (FBR) exceeded its quarterly tax collection target, with stronger-than-anticipated sales tax receipts providing the main boost to overall revenue during the three-month period.
While collections from sales tax and Federal Excise Duty (FED) performed better against their respective targets, income tax and customs duty revenues remained below the amounts set for the quarter.
Total tax collection recorded a modest 7 per cent increase compared with Rs2.889 trillion collected during the corresponding period last year.
In September alone, the FBR collected Rs1.360 trillion against a target of Rs1.343 trillion, posting an excess of Rs17 billion. The monthly collection was 11pc higher than the Rs1.229 trillion recorded in September 2025.
Cumulative revenue collection crossed Rs13 trillion in FY26, surpassing the downwardly revised target of Rs12.983 trillion by more than Rs21 billion. For FY27, the government has set a revenue collection target of Rs15.264 trillion.
During July-September FY27, the tax authority issued Rs203bn in refunds and rebates, compared with Rs159bn during the same period previously.
Income tax collection stood at Rs1.437 trillion during the first three months of FY27, missing the Rs1.484 trillion target by Rs47bn. Despite the shortfall, income tax receipts were 5pc higher than the Rs1.365 trillion collected in the same period last year.
Sales tax emerged as the strongest performer, with collections reaching Rs1.137 trillion against the Rs1.051 trillion target. The collection exceeded the target by Rs86bn and was 11pc higher than the Rs1.020 trillion recorded a year earlier.
Rising inflation has contributed to higher domestic sales tax receipts, particularly as petroleum prices increase. Higher fuel prices raise the Petroleum Development Levy (PDL) while also increasing the cost of other goods, which can result in additional sales tax revenue.
Customs duty collection reached Rs312bn during the quarter, falling Rs8bn short of the Rs320bn target.
Federal Excise Duty generated Rs197bn against a target of Rs198bn. The collection was nevertheless 3pc higher than the Rs191bn recorded during the same period last year.
Higher-than-expected receipts from the petroleum development levy also provided additional support to government revenues and helped compensate for some of the shortfalls recorded in other tax categories.
