ISLAMABAD: The Federal Board of Revenue (FBR) has left customs duty concessions granted under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) out of its Tax Expenditure Report 2026.
The FBR said these concessions arise from binding international commitments undertaken by the Government of Pakistan.
Unlike tax relief introduced through domestic policy choices, concessions under FTAs and PTAs cannot be withdrawn unilaterally without possible treaty consequences.
The board said it had applied the same principle used for international obligations under income tax.
Accordingly, revenue forgone through customs duty concessions under such agreements has not been classified as tax expenditure in the report.
