ISLAMABAD: The Federal Board of Revenue (FBR) has given a ruling that the Federal Excise Duty (FED) applicable to a specific set of products and services, does not fall under the definition of tax expenditure. Therefore, the FBR has not made Federal Excise Duty (FED) as part of the Tax Expenditure Report-2025.
Tax Expenditure Report-2025 issued by the FBR revealed that the tax expenditure estimates presented in this report focus on Income Tax, Sales Tax, and Customs Duty, based on data for Fiscal Year 2023–24.
FBR unveils report: FY24 tax expenditure estimated at Rs2.43trn
However, it is important to note that Federal Excise Duty (FED), which is applied to a specific set of products and services, does not fall under the definition of tax expenditure.
Unlike general taxes, which include exemptions, exclusions, credits, and allowances, FED is a targeted levy. As such, it is not designed with broad-based concessions or preferential treatments.
Therefore, FED is not considered part of the tax expenditure framework in this report, Tax Expenditure Report-2025 added.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.