FBR Beat Its First-Quarter Target by Rs 30.5 Billion and Paid Rs 203.2 Billion in Refunds
FBR is reported to have beaten its July to September 2026 target by about Rs 30.5 billion and paid Rs 203.2 billion in refunds. See what grew and what is next.
Short answer: FBR says it collected more than its target for July to September 2026, the first quarter of the 2026-27 fiscal year. The reported margin is about Rs 30.5 billion, or roughly 1 per cent. Refunds paid to taxpayers rose to Rs 203.2 billion, and sales tax, not income tax, drove the growth.
A first-quarter result is a small test with a big exam behind it. FBR has to collect Rs 15.264 trillion in the year, and one quarter is only about one fifth of that. So the useful question for a taxpayer is not who won the quarter. It is what the numbers say about where FBR is looking next.
The figures below were reported on 12 October 2026 and FBR called them provisional. When we checked the FBR press release page on 12 October, the figures were not yet posted there. We therefore mark every number as reported.
FBR reports it beat the first-quarter target by about 1 per cent
Provisional figures show net tax collection about 7 per cent above the Rs 2,889 billion of the same quarter last year. The reported beat over the target is about Rs 30.5 billion. September alone brought in Rs 1,360.7 billion against a monthly target of Rs 1,343 billion.
Gross collection, before refunds are paid out, is reported at Rs 3,286.7 billion against a target of Rs 3,047 billion, about 8 per cent up on last year. The reports do not make clear which measure the Rs 30.5 billion margin uses. For that reason we do not state a net total in rupees here.
September was the highest month of the quarter. It was about 11 per cent above the Rs 1,229 billion collected in September 2025. Our report on FBR's July collection showed the year opening ahead of target as well.
| Item, July to September | 2026-27 (reported) | Compared with last year (reported) |
|---|---|---|
| Refunds paid | Rs 203.2 billion | Up from Rs 159 billion |
| Sales tax refunds | Rs 130 billion | Up from Rs 112 billion |
| Income tax refunds | Rs 51 billion | Up from Rs 32 billion |
| Net sales tax collection | Rs 1,137 billion | Up from Rs 1,020 billion |
| Income tax collection | Rs 1,437 billion | Up from Rs 1,365 billion |
| Federal excise duty | Rs 197 billion | Up about 3 per cent |
| Customs duty | Rs 312 billion | Broadly unchanged |
Sales tax supplied most of the growth, income tax grew slowly
Net sales tax rose 11 per cent to Rs 1,137 billion and finished about 8 per cent above its own target. Income tax rose about 5 per cent to Rs 1,437 billion and stayed slightly below its target. Sales tax supplied roughly Rs 117 billion of the Rs 194 billion rise.
That split matters to small businesses. Officials credit digital monitoring of production and sales for the sales tax gain. Our note on retailers connected to FBR's point of sale system shows one part of that monitoring, and video cameras in factories are another. If you sell goods, expect your sales records to be checked against what your suppliers and buyers report.
Income tax collection is the largest single head, so its slow growth is the figure to watch. The reported reason is that rates were cut in the June budget while returns are still coming in.
Refunds rose 28 per cent, which is good news for exporters and filers
FBR paid Rs 203.2 billion in refunds in the quarter, up about 28 per cent. Sales tax refunds rose from Rs 112 billion to Rs 130 billion. Income tax refunds rose from Rs 32 billion to Rs 51 billion. In September alone refunds were Rs 47 billion, against Rs 35 billion a year earlier.
A refund is money FBR owes you after you paid too much tax or paid input tax you could not use. Higher refunds suggest claims are being cleared, although the reports give no processing time. If you are waiting for one, read how to claim an income tax refund and make sure your bank details are on your IRIS profile.
Budget tax cuts for salaried people are already in these numbers
The reported figures say the June budget cut income tax on salaried people from 1 July. Annual income between Rs 2.2 million and Rs 3.2 million moved from 23 per cent to 20 per cent. The 35 per cent top rate now applies above Rs 7 million, and the 9 per cent surcharge above Rs 10 million was removed.
Super tax slabs on business income between Rs 150 million and Rs 500 million were removed. Above Rs 500 million the rate fell from 10 per cent to 8 per cent for most sectors. Withholding rates on property deals were also reduced.
We have not re-read the Finance Act 2026 clause by clause for this report, so use the slab figures as reported. To see what the slabs mean for your own pay, use our salary tax calculator for 2026-27 and check the result against your payslip.
The hard part of the year is still ahead
One quarter equals about one fifth of the Rs 15.264 trillion annual target. FBR collected more than Rs 13 trillion in 2025-26, and the new year asks for a further rise. The reports also say the prime minister has set an enforcement target of Rs 778 billion, up from Rs 389 billion last year.
The return deadline was moved to 15 October, and the number of returns is expected to grow after it. Our report on the extension to 15 October has the date and what a late filer faces.
- File your return on or before 15 October 2026 if you have not yet.
- Keep sales tax invoices and bank records in order if you run a business.
- Put your correct bank account and IBAN on your IRIS profile before you claim any refund.
- Check your own figures in IRIS, because data matching is growing.
What we could not confirm
FBR had not posted the quarterly figures on its press release page when we checked on 12 October 2026. The numbers are reported as provisional, and FBR says they will be final after the accounts close. The net target, the net total in rupees and the exact base of the 1 per cent beat were not stated in a form we could read at the source.
Common questions
Did FBR meet its first-quarter target in 2026?
It is reported to have beaten it by about Rs 30.5 billion, roughly 1 per cent. The figures are provisional and FBR had not posted them on its press page when we checked.
How much did FBR pay in refunds from July to September 2026?
Rs 203.2 billion is reported, up from Rs 159 billion last year. Of that, sales tax refunds were Rs 130 billion and income tax refunds were Rs 51 billion.
What is FBR's annual collection target for 2026-27?
It is reported as Rs 15.264 trillion. The first quarter is about one fifth of it.
Which tax grew fastest in the first quarter?
Sales tax. Net sales tax rose about 11 per cent to Rs 1,137 billion, while income tax rose about 5 per cent to Rs 1,437 billion.
Does a higher collection mean new taxes are coming?
The reports say the quarter was achieved without a comparable package of new taxes. They point to enforcement, digital monitoring and more returns instead. No new tax was announced with these figures.
Is the 15 October return deadline still in force?
Yes, FBR moved the deadline for tax year 2026 from 30 September to 15 October 2026. Check the notice on the FBR website before you file.
How we verified this
What we checked, where we read it, and what we could not confirm.
We checked the FBR press release archive on 12 October 2026 and found no first-quarter collection release there yet. The figures come from reports of FBR's provisional numbers on 12 October. We will update this page when FBR publishes its own statement. Return dates and tax rates are on the FBR website.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
