- Sales tax collections in January stands at ₨360 billion against collection
BR Web Desk
Published January 31, 2026
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The Federal Board of Revenue (FBR) saw tax collection surge to Rs 1,015 billion in January 2026, marking a robust 16% month on month growth. This performance outpaced the six-month average growth of 10 to 11%, reflecting a clear encouraging path for the remaining months of FY-2026.
“This month’s tax performance reveals a nuanced and strategically significant fiscal outcome, characterised by substantial increase in direct taxation, modest growth in indirect and excise streams, and an overall healthy and improved performance in January 2026. It also reinforces the credibility of reform-driven revenue mobilisation and transformation plan of the FBR,” the FBR said in a press release.
The collection from income tax has shown significant improvement and has reached ₨483 billion against collection of ₨381 billion — representing a 26% impressive growth over previous year, it said.
The FBR said this improved revenue collection performance is not incidental but reflects the structural impact of the FBR’s reforms especially its enhanced enforcement measures and coordinated effort to realize the collection stuck in litigation.
Sales tax collections in January stood at ₨360 billion against collection of ₨322 billion showing growth of 12% over previous year. This trend is reflective of recovery and improvement in large scale manufacturing (LSM) growth which is a very positive and encouraging development.
January’s results validate FBR’s reform-driven transformation plan. By leveraging digital infrastructure and the collection through enforcement measures, the FBR said it is improving compliance, expanding and deepening the tax net, and fostering taxpayer trust. This performance in direct taxes signals emerging behavioural shifts toward greater voluntary compliance, with potential spillover benefits in coming months.
According to the handout, the FBR has collected Rs7,176 billion in the first seven months of the current FY-2026 against the collection of Rs6,490 last year. The FBR said it is optimistic that the growth recovery trends in LSM will continue which will help it in achieving the revenue targets for the current fiscal year. “Team FBR is fully committed to continue this momentum of growth in the remaining months,” it said.
