Pakistan’s tax revenues posted a sharp increase in December, led by a more than doubling of income tax collection, as the government pointed to improved compliance and digital reforms.

Income tax receipts rose 107 per cent to Rs831.5 billion in December, up from Rs402 billion in November.

Sales tax collection increased by 25 per cent to Rs403.7 billion, while federal excise duty grew six per cent to Rs98.8 billion.

Addressing Federal Board of Revenue (FBR) field formations via video link, Finance Minister Senator Muhammad Aurangzeb praised the teams for achieving record tax collection in December 2025.

He said the performance reflected the success of the government’s fiscal reform agenda, improved tax compliance, effective enforcement and ongoing digital reforms.

The minister noted that significant progress had been made over the past 18 months and described the December figures as highly encouraging.

Aurangzeb said the digitalisation of the economy, promotion of cashless transactions and a strengthened enforcement strategy, implemented without disrupting business activity, were beginning to deliver tangible and sustainable results.

He urged FBR teams to maintain the momentum as the government continues efforts to broaden the tax base and stabilise public finances.