The federal government has doled out Rs 1757.035 billion tax exemptions during the current fiscal year 2021-22.
According to Economic Survey, tax expenditure has been estimated at Rs 1757.035 billion for FY2022 which was Rs 1314.273 billion in last year.
According to FBR, Tax expenditure in respect of income taxes during FY2022 has been estimated Rs 399.662 million this includes Rs 10.625 million on allowances, Rs 65.465 million Tax Credits, Rs232.852 million exemptions from income tax, Rs195 million Reduction in Tax Rates, Rs3.2 billion Reduction in Tax Liability, Rs 61.076 million exemption from Specific Provisions and Rs26.146 million exemptions given on Others / Miscellaneous heads.
According to details, tax expenditure in respect of income taxes during FY2022 has been reduced from Rs448 million to Rs399 million in last one year.
On the other hand, sales tax exemptions surged to Rs 1014. 483 billion comparable to Rs 578.456 million in last year.
An increase of 203% sales tax exemptions from Rs173.808 million to 527.002 million estimated on import.
Meanwhile, 19% growth in Customs exemptions have also been estimated during current year which was from Rs287.771 million to 342.890 million.
