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.

The Federal Board of Revenue has reportedly not established a mechanism for refunding taxes collected under Section 7E and the Super Tax under Section 4C. LTBA-PILC Chairman Waheed Shahzad Butt said more than three months had passed since he requested a notified procedure, application format and designated forum. He warned that continued inaction could trigger further litigation and complaints before the Federal Tax Ombudsman from taxpayers seeking refunds of amounts they claim were unlawfully retained.

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.