Sources told Business Recorder here on Thursday that the FBR has worked out the cost of exemptions during July-April period of 2018-19. The cost of exemptions has been estimated at over Rs680 billion for the current fiscal year.
Out of total tax concessions and exemptions to the tune of over Rs680 billion, the exemptions continued from the last fiscal year totalled at Rs540 billion. The PML-N annual budget 2018-19 cost Rs100 billion and the Second Supplementary Finance Act cost Rs40 billion to the national exchequer.
The total tax exemptions and concessions to various sectors, lobbies/groups, investors and Chinese imports had cost the government Rs540.98 billion during the fiscal year 2017-18 against Rs415.751 billion in 2016-17, reflecting an increase of Rs125.229 billion.
The cost of tax exemptions of sales tax, income tax and customs duty was increased by Rs125.249 billion in 2017-18 when compared with 2016-17.
Following the withdrawal of concessionary/exemption statutory regulatory orders (SROs) of Rs132 billion in 2015-16, the total tax exemptions and concessions had cost the government Rs394.593 billion during 2015-2016 against Rs665 billion in 2014-15.