Pakistan’s Federal Board of Revenue (FBR) recorded a 30% month-on-month increase in April 2025 tax collections. It surpassed the Rs9,300 billion annual target for FY 2024-25. This growth occurred despite issuing Rs43 billion in refunds.
The increase reflects genuine revenue gains. Income tax receipts increased by 44%, indicating stronger compliance from both individuals and corporations. Sales tax increased by 17%, driven by rising economic activity and enhanced enforcement.
While the federal excise duty rose by 31%, this increase is more likely due to higher consumption and stricter monitoring. These figures suggest a possible economic rebound and growing contributions from the formal sector.
The FBR’s performance represents a sharp improvement over past years when targets were often missed. Exceeding the annual target with two months remaining gives the government more room to manage its budget and future IMF expectations.
However, analysts warn that some of the gains may be due to inflation or one time payments by consumers. Sustaining this growth will require deeper tax reforms and a broader tax base.