December Records Highest-Ever Tax Collection; Finance Minister Directs FBR to Further Boost Revenues

Islamabad: Pakistan recorded the highest tax collection in its history in December 2025, prompting the federal finance minister to commend the Federal Board of Revenue (FBR) and instruct it to further enhance revenue generation.

Federal Finance Minister Senator Muhammad Aurangzeb praised the performance of FBR field formations for achieving a historic milestone, describing it as clear evidence of the government’s fiscal reform agenda, improved tax compliance, effective enforcement, and successful digital reforms.

Addressing the FBR team and field formations via video link, the finance minister said significant progress had been made over the past 18 months, resulting in highly encouraging revenue figures for December 2025. He noted that the digitalization of the economy, promotion of cashless transactions, and a strong enforcement strategy—implemented without disrupting business activity—are now delivering practical and sustainable results.

During the briefing, the minister was informed that FBR collected Rs1,427.1 billion in taxes in December 2025, achieving 99 percent of the monthly target of Rs1,446 billion. This marks the highest-ever tax collection for the month of December in any year, reflecting improved compliance and enforcement.

According to the briefing, the Inland Revenue Service also demonstrated strong performance by collecting Rs1,308 billion against a target of Rs1,310 billion, achieving 99.8 percent of the goal. On a month-on-month basis, tax collection increased by 59 percent in December compared to November, when revenues stood at Rs898 billion.

The finance minister was further briefed that income tax collection saw the highest growth, surging by 107 percent from Rs402 billion in November to Rs831.5 billion in December. Sales tax collection rose by 25 percent to Rs403.7 billion, while federal excise duty increased by 6 percent to Rs72.8 billion. Customs duty collection also recorded a 15 percent rise, reaching Rs118.9 billion.

Officials informed the minister that continuous monitoring by the FBR board and the Ministry of Finance’s reform-driven strategy have contributed to stronger tax compliance, improved enforcement, and enhanced institutional accountability. The briefing emphasized that better compliance and effective enforcement remain the only sustainable path to reducing the tax burden on the formal sector.

Commending the FBR’s performance, the finance minister urged field formations to further accelerate their efforts and work harder to deepen and broaden the tax base. He expressed confidence that Team FBR, through its professionalism, dedication, and effective enforcement, would play a key role in achieving this important national objective.