ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) government has given Rs1,149billion tax exemption to influential sectors during the second year of its government.
According to Economic Survey 2019-20, the Federal Board of Revenue (FBR) has given Rs1,149billion tax exemptions in income, sales tax, and Customs.
According to details, FBR waived off Rs378bn in income taxes: Rs36bn in allowances, Rs104bn in credit, Rs212bn from total income, Rs128m in the reduction of tax rates, Rs2.9bn in liabilities, Rs2.97bn in specific provisions and Rs 18.9bn in other government income.
Similarly in sales tax, Rs13.6bn was exempted under expansion in Zero-Rating under Fifth Schedule, Rs255bn in Exemption on import, Rs74bn in Reduced Rates Under Eighth Schedule (2%), Rs8.6bn in Reduced Rates Under Eighth Schedule (5%), Rs35bn in Reduced Rates Under Eighth Schedule (10%), Rs53bn in Other Reduced Rates and Rs23bn in Sales Tax on mobile phones under Ninth Schedule. Overall, FBR gave an Rs518bn exemption in sales tax.
In addition to this, FBR also gave Rs253bn exemption in Customs, out of which Rs10bn was in Chapter-99 Exemptions, Rs45bn in FTA & PTA Exemptions, Rs87bn in Schedule Exemptions & Concessions, Rs95bn in General Concessions.
In the automobile sector, E&P Companies, and CPEC were exempted at least Rs4.7bn in Additional Customs Duty and Rs9.3bn in the exemption of regulatory duty.
That’s a good step to enhance the economic activities under such circumstances, but… Will Government be able to control the prices from extra profit earners???