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Home Prime News

Government Revenue Falls Short of Mid-Year Target in FY 2025/26

CEO Tab by CEO Tab
January 16, 2026
in Prime News
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In the first six months of FY 2025/26 (mid-July to mid-January), the government collected Rs 581.41 billion in revenue, meeting 81.75 percent of the target, according to the Ministry of Finance. This resulted in a shortfall of Rs 129.8 billion against the six-month target of Rs 711.21 billion.

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Revenue collection in the month of Poush stood at Rs 171.63 billion, achieving nearly 90 percent of the monthly target. However, both the Department of Customs and the Inland Revenue Department failed to meet their respective targets. Customs achieved about 83 percent of its goal, while the Inland Revenue Department collected around 81 percent.

Income tax collection remained particularly weak, reaching only 71 percent of the target and declining by 2.66 percent compared to the same period last year. Customs revenue showed an annual growth of over 8 percent but still lagged behind targets, while VAT collection also fell short. Excise duty performed relatively better, meeting about 90 percent of its target.

Despite the shortfall, overall revenue collection improved slightly compared to the same period last fiscal year, increasing by 2.47 percent. Mid-year revenue collection now accounts for 39.28 percent of the government’s annual target of Rs 1.48 trillion.

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