ISLAMABAD
(Mehtab Haider) Despite being under the IMF program, the cost of tax exemptions
provided by the government to powerful sectors is increasing every year and in
the financial year 2023-24, the cost is 3.9 trillion (3900 billion). has
reached Rs.2.23 trillion in the previous financial year. The cost of tax
exemptions has seen an increase of 27 percent as the power sector has received
Rs.1.7 trillion more tax exemptions in this financial year than in the previous
fiscal year. The sales tax exemption on cellular mobile phones caused a revenue
loss of Rs 0.33 trillion in 2023-24 compared to Rs 1 billion in 2022-23. GST
Exemption on POL products was the major factor that increased the cost of
granting exemption.
Sales Tax
Exemption on Local Supply of Petroleum Products (SRO.321(I)/2022) for the
current financial year. 1.257 trillion caused a huge revenue loss during the
period. Sales tax exemption on import of petroleum products resulted in a
revenue loss of Rs 0.81 trillion in the period. The Economic Survey 2023-24
shows that sales are the highest out of the total exemption cost of Rs 3,879.2
billion in 2023-24. There were tax expenditures. Exemption/concession of all
types of sales tax resulted in a revenue loss of Rs 2.858 trillion, while
revenue loss was Rs 0.543 trillion due to customs duty and Rs 0.476 trillion
due to income tax. FBR exempted sales tax on imports. This led to a revenue
loss of Rs 0.214 trillion in 2023-24 as against Rs 0.257 trillion in 2022-23,
showing a shortfall of Rs 43 billion.
The sales
tax exemption on local supplies contributed Rs 0.461 trillion in 2023-24. The
revenue loss was Rs 0.133 trillion in 2022-23, showing an increase of Rs 0.328
trillion. The cost of income tax exemption was Rs 0.477 trillion in 2023-24,
compared to Rs 0.424 trillion in 2022-23. was The cost of customs duty
exemption was Rs 0.543 trillion in 2023-24 as compared to Rs 0.521 trillion in
2022-23, showing an increase of Rs 21.8 billion. Revenue loss was not mentioned
due to the exception of The FBR has incurred a huge revenue loss of Rs 675
billion due to sales tax exemptions in 2023-24 compared to Rs 390 billion in
2022-23, showing an increase of Rs 285 billion. This loss was incurred due to
the sales tax exemptions available under the Sixth Schedule (Exemption
Schedule) to the Act, 1990. During 2023-24 incurred a loss of Rs.357.997
billion, the cost of income tax exemption increased from Rs.423.9 billion in
2022-23 to Rs.476.960 billion in 2023-24, showing a decrease of Rs.53 billion.
The cost of exceptions was Rs 543.521 billion in 2023-24 as against Rs 521.7
billion in 2022-23, showing an increase of Rs 21.821 billion.
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