ISLAMABAD: The tax credits given to various sectors in 2023-24 caused annual revenue loss of Rs 78.6 billion during this period.
The data has been given in the “Tax Expenditure Report-2025” issued by the Federal Board of Revenue (FBR) on Monday. Total tax expenditure from tax credits included tax credit for charitable donations u/s 61 (persons giving charitable donations); tax credit for contribution to Approved Pension Fund u/s 63 (eligible persons as defined in sub-section (19A) of section 2 of Ordinance); tax credit for Employment Generation by Manufacturers u/s 64B (Corporate Manufacturing Sector); tax credit for point of sale machine u/s 64D (persons who installed such machines meant for processing and recording the sale transactions for goods or services); tax credit for Non-Equity Investment in Plant and Machinery u/s 65B (Corporate Manufacturing Sector); tax credit for Equity Investment in Plant and Machinery u/s 65B (Corporate Manufacturing Sector);
Tax relief costs kitty Rs5.84trn
Tax Credit for Investment in Plant and Machinery by Existing Company u/s 65E (Corporate industrial units including corporate dairy farming); tax credit for certain persons engaged in coal mining projects, a startup, exporters of computer
software or IT services or IT enabled services; tax credit for specified industrial undertakings (specified industrial undertakings investing in new plant machinery and equipment), the report added.
Copyright Business Recorder, 2025