FED Hits Rs. 840 Billion as Cigarettes, Cement, and Air Travel Collections Grow

Federal Excise Duty collection increased 9.6 percent to Rs. 840.02 billion during fiscal year 2025-26 from Rs. 766.64 billion a year earlier, according to Federal Board of Revenue data.

The increase amounted to Rs. 73.38 billion. FED collection during the second half of FY2025-26 stood at Rs. 439.29 billion, up 4.6 percent from Rs. 420.07 billion in the same period of FY2024-25.

During the first half of FY2025-26, FED collection reached Rs. 400.73 billion compared with Rs. 346.57 billion a year earlier, showing stronger growth of 15.6 percent.

Cigarettes remained the largest source of FED revenue, generating Rs. 251.26 billion during FY2025-26 compared with Rs. 225.50 billion a year earlier. Collection from cigarettes increased 11.4 percent, or Rs. 25.76 billion, with growth accelerating from 4.6 percent in the first half to 17.2 percent in the second half.

Cement was the second largest contributor, with FED collection rising 4.1 percent to Rs. 160.35 billion from Rs. 154.11 billion. However, collection from the sector fell 7.7 percent during the second half compared with the same period a year earlier.

FED collection from services provided for inland air travel increased 8.7 percent to Rs. 57.68 billion from Rs. 53.06 billion. Collection in the first half rose 49.5 percent but declined 15.7 percent in the second half.

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