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

Federal Excise Duty (FED) collection in Pakistan reached Rs. 840.02 billion for the fiscal year 2025-26, marking a 9.6% increase from the previous year's Rs. 766.64 billion. This surge amounted to Rs. 73.38 billion. During the second half of FY2025-26, FED collection totaled Rs. 439.29 billion, a 4.6% rise from Rs. 420.07 billion in the same period the prior fiscal year. The first half of FY2025-26 saw FED collection at Rs. 400.73 billion, up 15.6% from Rs. 346.57 billion a year earlier.

Cigarettes led the way as the primary source of FED revenue, contributing Rs. 251.26 billion in FY2025-26, up from Rs. 225.50 billion the previous year. This growth of 11.4%, or Rs. 25.76 billion, accelerated from 4.6% in the first half to 17.2% in the second half. Cement contributed Rs. 160.35 billion, a 4.1% increase from Rs. 154.11 billion. However, cement collection declined by 7.7% during the second half compared to the same period the prior year.

FED collection from inland air travel services grew by 8.7% to Rs. 57.68 billion from Rs. 53.06 billion. Collection during the first half surged 49.5% but dropped 15.7% in the second half. Air travel FED collection rose 7.1% to Rs. 44.12 billion from Rs. 41.21 billion, up 28% in the first half before declining 9.5% in the second half.

Motor cars contributed Rs. 25.58 billion, a 10.4% increase from Rs. 23.18 billion, while sugar generated Rs. 12.57 billion, up 9.1% from Rs. 11.53 billion. Fertilizers and urea remained relatively stable at Rs. 22.19 billion, unchanged from Rs. 22.10 billion. Washing machines saw the largest increase, rising 48.7% to Rs. 7.26 billion from Rs.

4.88 billion, with a remarkable 62.1% growth during the second half. Beverage-related items experienced mixed results, with concentrates and aerated waters declining by 2.2% and 0.8%, respectively.