The Federal Board of Revenue collected Rs901 billion in August 2026, missing its Rs930 billion target by Rs29 billion. However, total revenue collection during July-August FY27 reached Rs1.722 trillion, exceeding the two-month target by Rs12 billion. Strong sales tax and federal excise duty receipts supported the performance, while income tax and customs duty collections remained below target. Income tax fell 3% year-on-year to Rs688 billion, whereas sales tax increased 14% to Rs718 billion.

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue to ensure an independent third-party audit of ongoing tax reforms. Chairing a review meeting, the prime minister said the reforms were intended to support Pakistan’s economic development. Officials briefed the meeting on IRIS 3.0, a central data hub and a new integrated tax operating model. International consultants are designing the system, which is expected to support pilot auto-taxation and the future use of artificial intelligence and machine learning to improve tax collection.

Tax Filing Crisis Feared as FBR Portal Shutdown Is Scheduled

A simplified and automated mechanism for Section 7E tax refunds was demanded by the Karachi Tax Bar Association following the Federal Constitutional Court’s decision. FBR Chairman Rashid Mahmood Langrial was urged to ensure the immediate release of refunds stuck for the past three financial years. Concerns were also raised over online return problems and the planned two-day FBR portal shutdown, with only 50 days left before the filing deadline. KTBA requested that tax professionals be consulted during the faceless system’s implementation.