ISLAMABAD (our reporter):- The annual cost of tax exemptions given by PTI government led by ex-prime minister Imran Khan for reducing oil prices and to various strong lobbies and foreign investors has increased by Rs443 billion (34 percent) to Rs1757 billion from Rs1314 billion during the outgoing fiscal year 2021-22 as compared to the same period of fiscal year 2020-21, revealed in the economic survey of 2021-22.

The Finance Minister Miftah Ismail has launched Economic Survey Report 2021-22 here in Islamabad.

This was the highest amount of tax concessions which is almost double of the total allocation of Rs900 billion for Public Sector Development Program (PSDP) for the fiscal year.

These tax exemptions have been approved over the period and are protected under the tax laws. But, no government has been able to reduce or remove these exemptions.

The tax expenditures have been estimated at Rs1.757 trillion on account of income tax, sales tax and customs duty concessions in the FY2021-22, mentioned in the economic survey.

According to the Economic Survey Report 2022, the PTI government has increased tax concessions on sales tax by 75 percent or Rs.436 billion to Rs1014 billion from Rs578 billion during the outgoing fiscal year as compared to the fiscal year 2020-21.

Out of total tax exemptions given in sales tax, the government has lost revenue Rs353 billion through the exemption which was given under 6th Schedule on (Imports) which is mainly due to withdrawal of sales tax on petroleum products. The loss of national exchequer through exemptions under 6th Schedule on Local supplies increased by Rs77.6 billion (50) to Rs233.5 billion from Rs156.1 billion during the period.  

The former regime has also increased by Rs55 billion tax concessions on customs duty to Rs343 billion from Rs 288 billion during the fiscal year 2021-22 as compared to fiscal year 2020-21.

The government has reduced the concession in income tax by almost Rs48 billion to Rs399.66 billion from Rs448 billion during the period.

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