Govt seeks wider tax net after record December collection

FBR tax revenue

Pakistan’s finance minister has urged tax authorities to tighten enforcement and bring more people and businesses into the tax net, as the country records its strongest ever revenue collection for the month of December.

In a video address to senior officials and field staff of the Federal Board of Revenue, Senator Muhammad Aurangzeb praised the performance of tax officers, saying the latest figures showed that the government’s reform drive was starting to produce real results.

According to an official statement released on Friday, the FBR collected Rs1,427.1 billion in December 2025. This was 99 percent of its monthly target and the highest December collection ever recorded.

The finance minister described the achievement as encouraging and said it reflected steady progress over the past year and a half.

He told officials that the government’s push to digitise the economy, promote cashless payments and strengthen enforcement was beginning to work, while still allowing businesses to operate without disruption.

December’s figures also marked a sharp jump from the previous month. Revenue rose by 59 percent compared with November, when collections stood at Rs898 billion. Officials said the increase was seen across all major taxes.

Income tax showed the biggest rise. Collections more than doubled, climbing 107 percent to Rs831.5 billion in December from Rs402 billion a month earlier. Sales tax revenue increased by 25 percent to Rs403.7 billion, while Federal Excise Duty rose 6 percent to Rs72.8 billion. Customs duty collections also grew, up 15 percent to Rs118.9 billion.

The Inland Revenue Service, which handles income and sales taxes, came close to a perfect score. It collected Rs1,308 billion against a target of Rs1,310 billion, achieving 99.8 percent of its goal.

The finance ministry said the record performance pointed to better compliance and stronger enforcement, supported by closer monitoring and the use of digital tools. It added that the results were in line with the government’s wider plan to build a more transparent and accountable tax system.

Despite the strong numbers, the finance minister made it clear that more work lies ahead. He called on FBR field formations to step up their efforts and focus on expanding the tax base, particularly by bringing untaxed or under-taxed sectors into the system.

He said improving compliance was the only lasting way to reduce pressure on those already paying taxes, especially businesses and salaried workers in the formal economy.

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