Pakistan posts record December tax collection, nearly meets target

Pakistan recorded its highest-ever tax collection for the month of December as the Federal Board of Revenue (FBR) collected PKR 1,427.1 billion in December, nearly meeting its monthly target and marking a major milestone in the government’s fiscal reform drive, officials said Thursday.

Finance Minister Muhammad Aurangzeb praised the FBR’s field formations for the record performance, calling it a clear validation of the government’s focus on compliance, enforcement and digitization.

Speaking to FBR officials via video link, he said the progress achieved over the past 18 months demonstrated that reforms aimed at documenting the economy and promoting cashless transactions were beginning to yield sustainable results.

According to official figures, the December collection reached 99% of the PKR 1,446 billion target, making it the highest revenue ever collected in December in Pakistan’s history. The Inland Revenue Service led the performance, collecting PKR 1,308 billion, or 99.8% of its assigned target.

Revenue collection surged 59% compared with November, when the FBR collected PKR 898 billion. The growth was broad-based across all major tax categories, reflecting stronger enforcement and improved compliance.

Income tax collection more than doubled on a month-on-month basis, rising 107% from PKR 402 billion in November to PKR 831.5 billion in December. Sales tax revenue increased 25% to PKR 403.7 billion, while Federal Excise Duty collections rose 6% to PKR 72.8 billion. Customs duty receipts also recorded a 15% increase, reaching PKR 118.9 billion.

Officials said the improved performance was achieved under continuous oversight of the FBR Board and in line with the Finance Ministry’s reform roadmap, which emphasizes institutional accountability and data-driven enforcement.

The finance minister urged FBR field formations to further intensify efforts to expand the tax base, stressing that stronger compliance and enforcement were essential to easing the tax burden on compliant taxpayers in the formal sector.

He expressed confidence that sustained professionalism and enforcement by the FBR would help ensure long-term revenue growth and support the government’s broader economic stabilization objectives.