ISLAMABAD: The electric power generation projects have availed income tax exemption of Rs82 billion during 2023-24.
According to the “Tax Expenditure Report-2025” issued by the Federal Board of Revenue (FBR) on Monday, revenue loss on account of income tax exemption granted to Special Economic Zones and developers of these zones stood at Rs 556.20million.
The tax concessions granted to the companies deriving income from transmission line projects in Pakistan caused revenue loss of Rs2 billion during 2023-24.
The reduced rate of tax for non-resident persons receiving such profits and gains has a revenue impact of Rs3 billion during this period.
The persons giving charitable donations availed tax credits of Rs9 billion during 2023-24.
The income tax exemption granted to pensioners has a revenue impact of Rs22 billion during 2023-24. This included any payment in the nature of commutation of pension received from the government or under any pension scheme approved by the Board.
The income tax exemption granted to employees (retired government servants & military personnel) has a revenue impact of Rs37 billion during 2023-24. This covered pensions received by employees of Federal Government, Provincial Government, or Armed Forces, or their families and dependents.
The revenue impact was Rs3 billion in case of any pension received by a citizen of Pakistan from a former employer, other than where the person continues to work for the employer (or an associate of the employer).
The income tax exemption to Approved Pension Funds caused revenue loss of Rs70.55 million in 2023-24. However, the said exemption available to Voluntary participants in pension funds has a revenue impact of Rs79.61 million.
The “Tax Expenditure Report-2025” further revealed that the revenue impact of income tax exemption granted to perquisites, benefits and allowances received by the Judiciary of superior courts stood at Rs522.11 million during 2023-24.
The “Tax Expenditure Report-2025” stated that the perquisites, benefits and allowances received by a Judge of Supreme Court of Pakistan and Judge of High Court, shall be exempt from tax under clause 56 of Part I of Second Schedule of the Income Tax Ordinance 2001.
The report further said that under the clause 55 of Part I of Second Schedule, the income tax exemption is available to perquisites represented by the right of a judge of the Supreme Court of Pakistan or of a judge of High Court to occupy free of rent as a place of residence any premises provided by Federal or Provincial Government, as the case may be, or in case a judge chooses to reside in a house not provided by Government, so much of income which represents the sum paid to him as house rent allowance. The revenue impact of the said exemption stood at Rs 121.80million during 2023-24.
The sales tax zero-rating on local supplies to diplomats caused a revenue loss of around Rs5 billion during 2023-24. This included supplies to diplomats, diplomatic missions, privileged persons and privileged organisations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the government of Pakistan.
The goods imported by Diplomats/ Embassies/ Consulates caused revenue loss of Rs988 million during 2023-24.
Copyright Business Recorder, 2025
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