AIRLINK 170.57 Decreased By ▼ -2.58 (-1.49%)
BOP 11.18 Increased By ▲ 0.53 (4.98%)
CNERGY 8.41 Decreased By ▼ -0.11 (-1.29%)
CPHL 99.73 Increased By ▲ 2.27 (2.33%)
FCCL 46.60 Decreased By ▼ -0.65 (-1.38%)
FFL 15.15 Decreased By ▼ -0.27 (-1.75%)
FLYNG 27.55 Decreased By ▼ -0.58 (-2.06%)
HUBC 137.78 Decreased By ▼ -1.13 (-0.81%)
HUMNL 12.92 Increased By ▲ 0.11 (0.86%)
KEL 4.54 No Change ▼ 0.00 (0%)
KOSM 5.36 Decreased By ▼ -0.19 (-3.42%)
MLCF 62.40 Increased By ▲ 0.14 (0.22%)
OGDC 212.16 Decreased By ▼ -2.59 (-1.21%)
PACE 5.42 Decreased By ▼ -0.13 (-2.34%)
PAEL 47.18 Increased By ▲ 2.32 (5.17%)
PIAHCLA 18.48 Decreased By ▼ -0.22 (-1.18%)
PIBTL 10.36 Decreased By ▼ -0.38 (-3.54%)
POWER 12.33 Increased By ▲ 0.07 (0.57%)
PPL 169.60 Decreased By ▼ -4.27 (-2.46%)
PRL 35.85 Decreased By ▼ -0.37 (-1.02%)
PTC 23.09 Decreased By ▼ -0.47 (-1.99%)
SEARL 96.26 Increased By ▲ 0.95 (1%)
SSGC 39.52 Increased By ▲ 0.39 (1%)
SYM 13.84 Decreased By ▼ -0.18 (-1.28%)
TELE 7.15 Decreased By ▼ -0.08 (-1.11%)
TPLP 10.03 Decreased By ▼ -0.26 (-2.53%)
TRG 63.48 Decreased By ▼ -1.20 (-1.86%)
WAVESAPP 9.99 Decreased By ▼ -0.05 (-0.5%)
WTL 1.31 Decreased By ▼ -0.02 (-1.5%)
YOUW 3.66 Decreased By ▼ -0.04 (-1.08%)
BR100 12,305 Decreased By -186.6 (-1.49%)
BR30 37,415 Decreased By -278.7 (-0.74%)
KSE100 114,853 Decreased By -1335.9 (-1.15%)
KSE30 35,217 Decreased By -533.1 (-1.49%)

ISLAMABAD: The Income Tax Expenditure (cost of exemption) has been estimated at Rs 476.96 billion during 2022-23.

The Federal Board of Revenue’s (FBR) latest Tax Expenditure-Report (2024) revealed that the income tax expenditures fall into various categories i.e. tax concessions given in the form of allowances, credits, exemptions, reduced rates, exclusion, etc.

Income tax expenditure accounted for 12.30% of the total tax expenditure in FY2022-23. It has increased by 12.52% in comparison with 2021-22.

Tax expenditures constitute 36.43pc of FBR tax collection?

The Income Tax expenditures measured in terms of GDP have reduced from 0.64% in 2021-2022 to 0.57% of GDP in the 2022-23.

An increase in exemptions amounting to Rs 61.06 billion i.e. 26.3 percent is witnessed under “Exemption from Total Income”, followed by Rs. 30.68 billion & Rs. 1.05 billion under “Exemptions Under Part VII of Chapter III (ITO, 2001)” & “Reduction in Tax Rates” respectively. The largest drop in absolute terms amounting to Rs. 27.76 billion i.e. 53.2 percent is seen in “Tax Credits”.

Major beneficiary sectors under Income Tax Expenditure The cumulative sum of income tax expenditures availed by top 10 sectors, amounts to Rs. 459,164.50 million which is 96.27% of the total income tax expenditure. It accounts for 11.84% of the total tax expenditure incurred during the FY 2022-23.

Copyright Business Recorder, 2024

Comments

Comments are closed.