ISLAMABAD:Total tax expenditures and concessions provided to various sectors have caused loss to the government under the tune of Rs394.593 billion during outgoing fiscal year against Rs655 billion in last financial year 2014-15, registering a decrease by Rs 270 billion.
According to tax expenditures details released through the Economic Survey for 2015-16 states that the tax expenditure for 2015-2016 worked out at Rs394.593 billion. The income tax expenditures provided exemption of Rs67 billion, sales tax Rs207 billion and customs duty Rs119 billion in fiscal year 2015-16.
Under the IMF program, the government withdrew tax exemptions to the tune of over Rs250 billion during last two financial years and now more concessions would be abolished in the upcoming budget 2016-17.
The cost of income tax exemptions has decreased to Rs67.3 billion in 2015-2016 against Rs 83.600 billion in 2014-15.
