Higher collections from General Sales Tax and Federal Excise Duty contributed to a significant increase in Pakistan’s overall tax revenue during FY2025-26.
Pakistan’s tax revenues strengthened during the 2025-26 fiscal year as the Federal Board of Revenue (FBR) reported a substantial increase in collections from General Sales Tax (GST) and Federal Excise Duty (FED).
According to official figures, combined net collections from GST and FED reached Rs329 billion during FY2025-26, up from Rs284 billion in the previous fiscal year. The year-on-year increase of Rs45 billion reflects improved revenue generation from indirect taxes, which remain a key source of government income.
The FBR’s broader revenue performance also showed positive momentum. Total tax collections climbed to Rs357 billion during the fiscal year, marking an increase of Rs42 billion compared with FY2024-25.
The rise in GST and FED collections comes as the government continues efforts to strengthen tax administration, improve compliance, and expand the country’s revenue base. Higher tax receipts are considered essential for meeting fiscal targets, financing public services, and supporting economic reforms.
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