FBR extends Tax Year 2026 income tax return deadline to 15 October
The Federal Board of Revenue has extended the deadline for filing income tax returns for Tax Year 2026 to 15 October, saying the decision followed requests from various trade bodies and tax bar associations. In a notification posted on X, the FBR said the extension applies to persons who were required to file their returns by 30 September 2026.
The extension comes as the FBR has been under pressure to broaden Pakistan's narrow tax base and meet ambitious revenue targets set under an agreement with the International Monetary Fund. For the current fiscal year, the government and the IMF have agreed an annual tax target of Rs15.263 trillion, requiring a 17.4% increase over last year's receipts. Under the programme, meeting tax targets is binding, and approval of the sixth loan tranche hinges on achieving the first-half target.
Provinces have promised to give a little over Rs1 trillion in grants to the federal government for defence and water projects, subject to the condition that the FBR collects Rs15.263 trillion in revenues. The government has also taken revenue and enforcement measures of over Rs1 trillion in the budget to help the FBR reach the target.
Provisional statistics show the FBR collected more than Rs685 billion in income tax, falling short of the two-month target by Rs74 billion. Income tax collection was also Rs29 billion less than the last fiscal year, marking negative growth of 4%. For the second consecutive month, sales tax collection remained higher than the target, at Rs719 billion, exceeding the target by Rs85 billion and up 14%, or Rs86 billion, from last year. Of the total, Rs496 billion, or 69%, was generated at the import stage.
In the budget, the government changed the law to collect sales tax at market prices of goods, instead of factory-gate prices, for numerous items. The change has reduced chances of tax evasion but broken the value-added chain. Federal excise duty collection stood at Rs118 billion, almost equal to the target and Rs3 billion higher than last year. Customs duty collection hit Rs198 billion, slightly lower than the target and equal to the previous year's receipts. The deadline extension gives taxpayers more time, but the provisional figures point to pressure on income tax collection even as sales tax receipts exceed targets.
