FBR excludes FTA, PTA customs concessions from 2026 tax expenditure report
Board says duty relief under international trade agreements reflects binding treaty commitments rather than discretionary domestic tax policy.
The Federal Board of Revenue (FBR) has left customs duty concessions granted under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) out of its Tax Expenditure Report 2026.
The FBR said these concessions arise from binding international commitments undertaken by the Government of Pakistan.
Unlike tax relief introduced through domestic policy choices, concessions under FTAs and PTAs cannot be withdrawn unilaterally without possible treaty consequences.
The board said it had applied the same principle used for international obligations under income tax.
Accordingly, revenue forgone through customs duty concessions under such agreements has not been classified as tax expenditure in the report.
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.
View all articles →Comments
No comments yet. Be the first to join the discussion!
