ISLAMABAD: The Federal Board of Revenue (FBR) has suffered a revenue loss of Rs161 billion on account of customs duty exemptions and concessions granted to poultry, textile sectors and miscellaneous goods imported during 2023-24 under 5th Schedule of the Customs Act.
According to the “Tax Expenditure Report-2025” issued by the Federal Board of Revenue (FBR), the customs duty exemption/reduced rates on the import of essential edible items like pulses, potato, etc, oil and oil products, inputs of export sectors etc has caused revenue loss of Rs124 billion in 2023-24.
The general exemption of customs duties on import from China under Pak-China Free Trade Agreement (FTA) has revenue impact of Rs47 billion during this period.
The total Customs Duty expenditure for the top 10 categories amounts to Rs566 billion, which represents 87.73 percent of the overall Customs Duty expenditure during 2023-24.
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Total Customs Duty Expenditure for 2023-24 is estimated at Rs652.39 billion. These customs duty concessions primarily take the form of reduced rates, zero rates, and exemptions granted to specific sectors or items.
These concessions are broadly distributed across categories such as plant machinery, equipment, chemicals, parts, and renewable energy equipment, among others.
Customs Duty expenditure represents 0.62 percent of GDP in FY 2023-24, contributing 26.80 percent to the total tax expenditure, the report added.
Copyright Business Recorder, 2025
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