The Federal Board of Revenue (FBR) has started the new fiscal year on a strong note, collecting more than its July tax target while also rolling out a new system aimed at reducing unnecessary tax litigation.
According to official figures compiled on Friday, the FBR collected Rs816 billion during July 2026 against a target of Rs780 billion, exceeding the goal by Rs36 billion.
The performance also marked a sharp improvement from the Rs754 billion collected in July last year, taking year-on-year growth to Rs62 billion.
Officials said the collection could rise to around Rs820 billion once the final figures for the month are compiled.
The achievement is being described as a first for the tax authority, as the FBR met its July collection target for the first time. Officials credited the result to improved planning, stronger enforcement and a revised revenue strategy led by FBR Chairman Rashid Mahmood Langrial and Member Inland Revenue (Operations) Zubair Bilal.
In a separate development, the FBR has also set up three Independent Case Scrutiny Committees (ICSCs) to review tax disputes before they move to higher courts. The move is aimed at reducing unnecessary litigation with taxpayers and ensuring greater consistency in legal decisions.
The committees have been formed under the Income Tax Ordinance, Sales Tax Act and Federal Excise Act and will operate in Islamabad, Lahore and Karachi.
The Islamabad committee will be headed by former Justice Athar Saeed, while former Justice Khawaja Farooq Saeed will lead the Lahore committee. Former Justice Maqbool Baqir has been appointed chairman of the Karachi committee.
Each committee includes legal experts and former senior FBR officials and will oversee tax cases from regional tax offices within their respective jurisdictions.
Under the new framework, the panels will examine whether cases should be taken to the High Courts or the Supreme Court, and will also review ongoing litigation to determine if continuing legal proceedings serves the government’s revenue interests.
The committees will also maintain a database of settled legal issues and court rulings to promote consistency in future cases. They have also been tasked with identifying legal or administrative gaps and recommending policy or legislative changes where needed.
The office order establishing the committees has been approved by the competent authority and has taken immediate effect.
