Rs2.35trn granted as tax exemptions and concessions in FY25, NA told

The federal government granted tax exemptions and other concessions worth Rs2.352 trillion in FY2024-25, down from Rs2.434 trillion a year earlier, Finance Minister Muhammad Aurangzeb told the National Assembly, Business Recorder reported. The total had reached Rs2.54 trillion in 2022-23. The figures include income tax, sales tax and customs duty measures, with the reported amount representing revenue foregone.

Sales tax relief rose to Rs1.274 trillion, while income tax concessions increased to Rs579.698 billion. Customs duty expenditures fell to Rs499.137 billion from Rs652.390 billion in FY2023-24. General concessions covering automobiles, exploration and production companies, CPEC and other areas reached Rs275.772 billion; the Finance Ministry’s Tax Policy Office plans to complete a cost-benefit assessment of major incentives by June 2027.