Federal Excise Duty (FED) collection in Pakistan increased significantly during fiscal year 2025-26, reaching Rs. 840.02 billion as revenue from major sectors, including cigarettes, cement and air travel, continued to contribute to government receipts.
According to data from the Federal Board of Revenue (FBR), FED collection rose by 9.6 percent during FY2025-26 compared with Rs. 766.64 billion collected in the previous fiscal year.
The latest figures show an increase of Rs. 73.38 billion in Federal Excise Duty revenue over the one-year period. The growth highlights continued revenue generation from sectors subject to federal excise taxation.
FED collection also recorded growth during both halves of the financial year. However, the pace of increase differed considerably between the first and second halves of FY2025-26.
During the first half of FY2025-26, FED revenue stood at Rs. 400.73 billion, compared with Rs. 346.57 billion during the corresponding period of FY2024-25.
This represented a year-on-year increase of 15.6 percent, making the first half the stronger contributor to the overall annual growth in Federal Excise Duty collection.
The second half of FY2025-26 generated Rs. 439.29 billion in FED revenue. The figure was higher than the Rs. 420.07 billion collected during the same period a year earlier.
On a year-on-year basis, second-half FED collection increased by 4.6 percent, according to FBR data. Although the growth rate was lower than in the first half, the second-half collection remained higher in absolute terms.
The rise in FED revenue was supported by collections from important taxable sectors. Cigarettes remained among the sectors contributing to federal excise receipts, while cement and air travel also added to overall collection.
Federal Excise Duty is an important source of government revenue in Pakistan and applies to a range of locally produced goods, imported products and selected services. Changes in FED collections can therefore provide an indication of revenue activity across several parts of the economy.
The latest FBR figures come as Pakistan continues efforts to strengthen tax collection and improve government revenues. Higher receipts from federal duties can play a role in supporting fiscal management and meeting revenue targets.
The difference between the first- and second-half growth rates also provides an important picture of the revenue trend during FY2025-26. While the first six months recorded stronger percentage growth, the second half still delivered a larger total FED collection.
Overall, Federal Excise Duty revenue increased from Rs. 766.64 billion in FY2024-25 to Rs. 840.02 billion in FY2025-26. The Rs. 73.38 billion increase represents a notable rise in federal excise receipts over the period.
The figures will remain relevant for businesses and economic observers tracking Pakistan’s tax revenues, consumer activity and fiscal performance. Further FBR data can provide additional insight into which sectors contributed most to the increase in FED collection during the financial year.
