The Federal Board of Revenue (FBR) collected more than Rs. 1.72 trillion in taxes during the first two months of FY2026-27, coming in around Rs. 12 billion above its combined target despite falling short of the August goal.

FBR had set a tax collection target of Rs. 1.71 trillion for July and August. During August, however, the authority collected Rs. 902 billion against the monthly target of Rs. 930 billion, resulting in a Rs. 28 billion shortfall.

Despite the monthly gap, cumulative collections for the two-month period reached over Rs. 1.722 trillion, keeping FBR slightly ahead of its overall target.

The tax authority has also paid substantially more refunds compared with the same period last year. Refund payments reached Rs. 155 billion during the first two months of the current fiscal year, compared with Rs. 124 billion in the corresponding period of the previous year.

FBR therefore issued Rs. 31 billion more in refunds year-on-year, which has added pressure on its net revenue position even though gross tax collection remains above the cumulative target.