Islamabad, June 9, 2025: In the ongoing fiscal year, Pakistan’s total tax exemptions have soared beyond Rs. 5,840 billion, as revealed in the latest Economic Survey Report.
According to the report:
- Income tax exemptions have surpassed Rs. 800 billion.
- Sales tax exemptions have escalated beyond Rs. 4,253 billion.
- Customs duty exemptions have reached Rs. 786 billion.
Several sectors and schedules have seen significant tax relief:
- The zero-rated sectors received over Rs. 683 billion in tax exemptions.
- Under the Sixth Schedule, tax exemptions on local supplies have crossed Rs. 613 billion, while imports under the same schedule saw relief exceeding Rs. 372 billion.
- The Eighth Schedule accounted for tax exemptions of Rs. 617 billion.
- Tax exemptions under the Ninth Schedule rose above Rs. 87 billion, and under the Twelfth Schedule, they reached Rs. 49 billion.
In the petroleum sector:
- Tax exemptions on local supply of petroleum products exceeded Rs. 1,496 billion.
- Exemptions on imported petroleum products crossed Rs. 299 billion.
Moreover, various zero-rated sections saw tax reliefs surpassing Rs. 29 billion.
The sharp rise in tax exemptions highlights the government’s continuing efforts to support specific sectors, though it also raises questions about revenue sustainability and tax base broadening in the long term.
Read More: Telecom Industry in Pakistan Earns Rs. 833 Billion Revenue, Pays Rs. 233 Billion in Taxes
