The federal government has indicated that it is speeding up measures to further tighten tax enforcement and expand the tax base. Finance Minister Senator Muhammad Aurangzeb has urged the Federal Board of Revenue (FBR) to strengthen compliance with tax laws and widen the scope of taxation.
According to a statement released on Friday, Aurangzeb praised FBR field formations for achieving the highest tax collection ever for the month of December. He described this performance as strong evidence of the government’s fiscal reform agenda and its continued focus on tax compliance, enforcement, and digitalization.
While addressing the FBR team and field formations via video link, the finance minister said that the progress made over the past 18 months is commendable and that the December 2025 collection is highly encouraging. He emphasized that the government’s strategy of digitizing the economy, promoting cashless transactions, and strengthening enforcement while keeping business activity running has begun to deliver real and lasting results.
Reflecting this policy direction and administrative commitment, the FBR collected Rs 1,427.1 billion in December 2025, which is 99 percent of its monthly target of Rs 1,446 billion. The statement said this performance represents the highest tax collection ever recorded in any December, showing improved enforcement of tax laws and stronger compliance across the system.
The Inland Revenue Service (IRS) achieved 99.8 percent of its target, collecting Rs 1,308 billion against a target of Rs 1,310 billion.
On a month to month basis, tax collection jumped by an impressive 59 percent, rising from Rs 898 billion in November to Rs 1,427.1 billion in December. This increase was seen across all major tax heads.
Income tax collection more than doubled, increasing by 107 percent from Rs 402 billion in November to Rs 831.5 billion in December. Sales tax collection rose by 25 percent to Rs 403.7 billion, while federal excise duty increased by 6 percent to Rs 72.8 billion. Customs duty collection grew by 15 percent to Rs 118.9 billion.
The statement added that under the continued oversight of the FBR Board and in line with the Ministry of Finance’s reform roadmap, these results show a clear shift toward stronger compliance, better enforcement, and institutional accountability. This further strengthens confidence in the government’s commitment to sustainable revenue growth.
