FBR Marks Taxpayers Inactive; October Revenue Misses Target by Rs158 Billion

FBR Marks Thousands of Taxpayers Inactive After October 31 Filing Deadline

The Federal Board of Revenue (FBR) has shifted thousands of taxpayers from active to inactive status after they failed to submit their income tax returns by the October 31, 2026 deadline. The action reportedly also affected individuals who had applied for additional time to file their returns.

The status changes took effect immediately after the expiry of the twice-extended deadline for submitting income tax returns.

According to tax experts, some taxpayers who submitted extension requests on October 31 were also marked inactive despite having applied for additional time to complete their filings.

The enforcement action comes as the FBR faces a revenue collection shortfall during the ongoing fiscal year.

The tax authority collected Rs4.06 trillion during the first four months of FY2026-27, missing its July-October target by Rs124 billion. However, collections were still 6% higher than those recorded during the corresponding period last year.

Provisional figures compiled up to October 30 showed that tax revenue increased by Rs220 billion year-on-year. This growth remained considerably below the 17.4% increase required to achieve the annual collection target.

The government has set an FBR revenue target of Rs15.263 trillion for FY2026-27 under its programme with the International Monetary Fund (IMF).

October collection also falls short

During October alone, the FBR collected Rs974 billion against its assigned target of Rs1.132 trillion, leaving a shortfall of Rs158 billion.

Revenue collection increased by just Rs23 billion, or 2.5%, compared with October of the previous fiscal year, indicating slower growth in tax receipts.