Highest Ever December Tax Collection Reported by FBR
Pakistan has recorded its highest ever tax collection for the month of December, with the Federal Board of Revenue (FBR) collecting Rs. 1,427.1 billion in December 2025. The figure represents 99 percent of the monthly target of Rs. 1,446 billion, making it the strongest December performance in the country’s history.
Finance Minister Muhammad Aurangzeb highlighted the milestone while addressing FBR officers via video link from Islamabad. He praised the efforts of field formations and senior officers, saying the result showed that recent policy changes and operational reforms were beginning to deliver tangible outcomes.
Month-on-Month Revenues Jump 59 Percent
FBR’s December performance also stands out when compared with the previous month. Tax revenues rose sharply by 59 percent on a month-on-month basis, increasing from Rs. 898 billion in November to Rs. 1,427.1 billion in December. Officials said growth was recorded across all major tax heads.
Income tax showed the largest jump, more than doubling by 107 percent from Rs. 402 billion in November to Rs. 831.5 billion in December. Sales tax collection increased by 25 percent to Rs. 403.7 billion, while Federal Excise Duty (FED) rose by 6 percent to Rs. 72.8 billion. Customs duty collection also strengthened, growing 15 percent to reach Rs. 118.9 billion during the month.
Inland Revenue Service Delivers Near-Target Performance
The Inland Revenue Service played a key role in the record collection. According to the data, Inland Revenue collected Rs. 1,308 billion against a target of Rs. 1,310 billion, achieving 99.8 percent of its assigned goal. This near-target performance was described as a strong signal that enforcement and compliance measures are gaining traction.
The finance minister said the December outcome validated the government’s fiscal reform agenda, which places heavy emphasis on better compliance, data-driven enforcement and the use of technology to reduce leakages. He noted that FBR’s ability to sustain and build on such performance would be crucial for meeting full-year revenue targets agreed with international partners.
Reforms Focus on Digitisation and Cashless Transactions
Aurangzeb linked the improved numbers to measures taken over the past 18 months to digitise the economy and widen the tax base. These include promoting cashless transactions, expanding the use of technology in invoicing and reporting, and stepping up data integration between different arms of the government.
He stressed that enforcement efforts were being strengthened without unnecessarily disrupting business activity. The minister argued that smarter use of digital tools, rather than purely manual checks, allows FBR to identify under-reporting and tax evasion more accurately while reducing face-to-face friction with compliant taxpayers.
Stronger Oversight and Institutional Accountability at FBR
The finance minister also highlighted the role of governance reforms inside FBR itself. He said that continued oversight by the FBR Board and closer alignment with the Finance Ministry’s reform roadmap were helping to strengthen institutional accountability and professional standards.
According to Aurangzeb, these changes are intended to ensure that revenue growth is sustainable, rather than dependent on one-off measures. Regular performance reviews, clearer targets and better use of analytics are expected to guide decision-making at both headquarters and field levels.
Call to Widen and Deepen Pakistan’s Tax Base
Concluding his address, the finance minister urged FBR field formations to intensify their efforts to widen and deepen the tax base. He said improved compliance and firm but fair enforcement were essential if Pakistan is to reduce pressure on the formal sector, which has long borne the bulk of the tax burden.
Aurangzeb expressed confidence that FBR would continue to play a central role in achieving the national objective of a fairer and more efficient tax system. He argued that higher, more predictable revenue flows are critical for funding social protection, development projects and investments in growth, and that December’s record collection should be seen as a starting point rather than a finish line.
