FBR reports PKR 78 bn annual revenue loss from tax exemptions

Islamabad: The Federal Board of Revenue’s 2024 Tax Expenditure Report highlights significant revenue losses due to tax exemptions, as reported on July 7.

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According to the details, Income tax exemptions granted to pensionePKR  alone resulted in an annual revenue loss of PKR 78 billion. The report also reveals that the top 10 sectors  benefited disproportionately from income tax exemptions, totaling PKR 459.16 billion, which accounts for 96.27% of the total income tax expenditure. 

Additionally, tax exemptions in various sector  have had substantial financial impacts:

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– The financial sector  experienced a revenue loss of PKR 115 billion.

– Social security exemptions led to a loss of PKR 60 billion.

– The state apparatus suffered a negative impact of PKR 57 billion.

– Energy and mining sector saw a revenue loss of PKR 41 billion.

– The health and pharmaceutical sector had exemptions totaling PKR 14 billion.

These exemptions collectively contribute to significant revenue reductions, affecting the national budget and financial planning.