Pakistan’s Federal Excise Duty (FED) collection increased 9.6 percent to Rs840.02 billion during fiscal year 2025-26.
Federal Board of Revenue data showed collection rose from Rs766.64 billion in the previous fiscal year. The increase amounted to Rs73.38 billion.
However, FED collection growth slowed during the second half of the fiscal year. Collection reached Rs439.29 billion, up 4.6 percent from Rs420.07 billion.
FED Collection Shows Strong First-Half Growth
During the first half of FY2025-26, FED collection reached Rs400.73 billion.
The figure stood at Rs346.57 billion during the same period last year. As a result, first-half collection recorded growth of 15.6 percent.
Cigarettes remained the largest contributor to FED revenue throughout the fiscal year. Collection from the sector reached Rs251.26 billion, compared with Rs225.50 billion previously.
The cigarette sector recorded an 11.4 percent increase, adding Rs25.76 billion. Growth accelerated from 4.6 percent in the first half to 17.2 percent during the second half.
Cement Remains Second-Largest Contributor
Cement ranked as the second-largest source of FED revenue during FY2025-26.
Collection from cement increased 4.1 percent to Rs160.35 billion from Rs154.11 billion. However, second-half collection declined 7.7 percent year-on-year.
Meanwhile, FED collection from inland air travel services rose 8.7 percent. Revenue reached Rs57.68 billion compared with Rs53.06 billion previously.
The sector recorded strong 49.5 percent growth during the first half. However, collection fell 15.7 percent during the second half.
Air travel FED collection also increased 7.1 percent to Rs44.12 billion. It stood at Rs41.21 billion a year earlier.
First-half collection from air travel rose 28 percent. However, the figure declined 9.5 percent during the second half.
Motor Cars and Sugar Add to FED Revenue
Among other major contributors, FED collection from motor cars rose 10.4 percent.
Revenue from the sector reached Rs25.58 billion, compared with Rs23.18 billion a year earlier.
Sugar collection also increased 9.1 percent to Rs12.57 billion from Rs11.53 billion.
Meanwhile, fertilizers and urea generated Rs22.19 billion in FED revenue. The figure remained almost unchanged from Rs22.10 billion recorded previously.
Washing Machines Record Major Growth
Washing machines recorded one of the largest increases among major FED revenue items.
Collection from the sector surged 48.7 percent to Rs7.26 billion. It had generated Rs4.88 billion during the previous fiscal year.
Growth remained strong throughout the year. Collection increased 32.2 percent during the first half and 62.1 percent during the second half.
Beverage-Related FED Collection Declines
Beverage-related items posted mixed results during FY2025-26.
FED collection from concentrates used in beverages and food products fell 2.2 percent. Revenue declined to Rs38.15 billion from Rs39.01 billion.
Similarly, collection from aerated waters and beverages dropped 0.8 percent. It reached Rs32.36 billion compared with Rs32.64 billion a year earlier.
Other Items Drive Additional Revenue
The 15 major FED revenue items generated Rs687.42 billion during FY2025-26.
Their combined collection stood at Rs642.66 billion a year earlier. This represented 7 percent growth and an additional Rs44.77 billion.
Revenue from other FED items performed more strongly. Collection increased 23.1 percent to Rs152.60 billion from Rs123.98 billion.
FBR data also showed that gross and net FED collection both reached Rs840.02 billion during FY2025-26.
No refunds were recorded during either FY2025-26 or the previous fiscal year. As a result, gross and net collections remained equal.
For the latest updates, visit and follow The Truth International website (www.thetruthinternational.com) and subscribe to the YouTube Channel.
