ISLAMABAD: Huge revenue loss on account of the international trade agreements including Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs), inked with different countries, is not made part of the tax expenditure report 2026.
According to the tax expenditure report 2026 of the Federal Board of Revenue (FBR), the Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) represent binding international treaty obligations of the Government of Pakistan.
As with the treatment of international obligations in the context of Income Tax, customs duty concessions arising from such agreements are not result of a discretionary domestic policy preference; they are obligations that Pakistan has assumed and cannot revoke unilaterally without triggering treaty consequences.
Accordingly, customs duty foregone under FTAs and PTAs is not classified as tax expenditure in this report, FBR added.
Copyright Business Recorder, 2026
Comments