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Pakistan Customs revenue rises 17% in first 11 months of fiscal year despite May slowdown

Pakistan Customs revenue rises 17% in first 11 months of fiscal year despite May slowdown

KARACHI: Pakistan’s customs authorities collected PKR 3.58 billion in duties and taxes from July 2025 through May 2026, a 17% increase compared with the same 11-month period a year earlier, according to an official document seen be Bolnews.

The July-to-May performance showed broad-based growth across all major tax categories, even as collections softened in the final month of the reporting period.

Customs duty collections for the 11 months reached PKR 961.4 million, up 10% from PKR 877.9 million collected from July 2024 to May 2025. Sales tax revenue rose 18% to PKR 2.06 billion, while federal excise duty surged 43% to PKR 190.4 million. Income tax collections increased 18% to PKR 364.3 million.

The cumulative customs duty collections, however, remained 5.6% below the PKR 1.02 billion target set for the period, according to the document.

Among the four appraisement formations, Appraisement SAPT recorded the strongest growth in customs duty, with collections rising 23% to PKR 328.6 million. Appraisement East grew 17% to PKR 221.5 million, and Appraisement West rose 7% to PKR 180.8 million. Only Appraisement PQ reported a decline, falling 9% to PKR 230.5 million.

Sales tax collections saw double-digit increases in three of the four formations, led by Appraisement SAPT with 38% growth to PKR 719 million. Appraisement East and West grew 15% and 16%, respectively, while Appraisement PQ posted a 3% gain.

Federal excise duty showed dramatic variation by formation. Appraisement SAPT reported an 800% increase to PKR 69.9 million, while Appraisement East rose 41% to PKR 17.6 million. Appraisement West saw a 7% decline to PKR 98.3 million, and Appraisement PQ fell 34% to PKR 4.6 million.

May 2026 Collections Miss Targets

Despite the strong 11-month performance, collections for May 2026 alone showed significant deterioration. Total revenue for the month reached PKR 304.6 million through May 31, down 7% from PKR 327.9 million collected during the same period in May 2025.

Customs duty for May totaled PKR 78.7 million, a 14% drop from PKR 91.6 million a year earlier, and fell 27% short of the PKR 107.6 million monthly target.

Sales tax collections in May declined 4% year-over-year to PKR 175.3 million, while federal excise duty fell 8% to PKR 20.6 million. Income tax collections also dropped 4% to PKR 30 million.

On the final day of May alone, collections collapsed 95% to just PKR 2.2 million compared with PKR 4.5 million on May 31, 2025.

The customs department’s grand total for all taxes collected from July through May stood at PKR 3.58 billion, though the document’s summary tables did not specify an aggregate target for combined duties and taxes. The PKR 1.02 billion target listed in the report applies only to customs duty, officials indicated.

Authorities have not yet commented on the reasons for the weak monthly performance or whether any policy or administrative changes affected end-of-period collections. The fiscal year concludes June 30.

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