ISLAMABAD: The Finance Minister of Pakistan Muhammad Auranzeb has admired the Federal Board of Revenue (FBR) for achieving the highest-ever tax collection in the country’s history during December 2025 and has directed the authority to further strengthen efforts to enhance revenue collection in the coming months.
In this regard, the finance minister described the record-breaking performance as a clear indication of the government’s ongoing fiscal reform agenda. He said the achievement demonstrates the success of improved tax compliance, effective enforcement, and wide-ranging digital reforms introduced over the past 18 months.
In such a scenario, the FBR collected Rs 1,427.1 billion in taxes during December 2025, meeting 99 percent of the monthly target of Rs 1,446 billion. This indicates the highest tax collection ever recorded in the month of December in any fiscal year, underlining the vital improvements in compliance and enforcement mechanisms.
So far, the Senator Aurangzeb noted that sustained progress over the last year and a half has begun to deliver tangible and sustainable results. He mentioned the role of economic digitalization, the promotion of cashless transactions, and a balanced enforcement strategy that supports compliance without disrupting legitimate business activity. These measures, he said, are strengthening the tax system while supporting economic stability.
In this sense, the briefing further revealed that the Inland Revenue Service recorded collections of Rs 1,308 billion against a target of Rs 1,310 billion, achieving 99.8 percent of its goal. On a month-on-month basis, tax revenues rose sharply by 59 percent compared to November. Collections increased from Rs 898 billion in November to Rs 1,427.1 billion in December.
Moreover, a detailed breakdown showed that income tax collections registered the highest growth, increasing by 107 percent from Rs 402 billion in November to Rs 831.5 billion in December.
Sales tax collections rose by 25 percent to Rs 403.7 billion, while federal excise duty increased by 6 percent to Rs 72.8 billion. Customs duty collections also recorded a 15 percent rise, reaching Rs 118.9 billion.
However, the finance minister was informed that continuous monitoring by the FBR Board, aligned with the Ministry of Finance’s reform strategy, has played a key role in improving institutional accountability and enforcement. Officials emphasized that stronger compliance and effective enforcement remain the only sustainable path to reducing the tax burden on the formal sector.
Meanwhile, Senator Aurangzeb urged them to intensify their work to further broaden and deepen the tax base. He expressed confidence that, through professionalism, dedication, and effective implementation, the FBR would continue to play a pivotal role in achieving the country’s critical national revenue objectives.
