The federal government has extended massive tax incentives and exemptions amounting to tens of trillions of rupees over the past two fiscal years, according to official sources, highlighting the scale of fiscal concessions granted to multiple sectors of the economy.
Sources indicate that during the fiscal years 2022-23 and 2023-24, significant tax relief was provided through various heads including income tax, sales tax, customs duty, and sector-specific exemptions aimed at supporting industry, trade, and public services.
Under income tax exemptions alone, the government reportedly facilitated concessions worth Rs 1.022 trillion to different segments of the economy. In addition, large-scale investors and corporate entities benefited from sales tax exemptions estimated at Rs 2,757 billion during the same period.
Customs duty relief over the two fiscal years stood at around Rs 1,195 billion, reflecting import-related facilitation measures introduced for trade and industrial inputs.
Sector-wise data shows that energy and mining industries received exemptions worth Rs 103.47 billion, while housing and public development authorities were extended relief of approximately Rs 432.8 million. The education sector also benefited from tax exemptions amounting to Rs 17 billion, whereas the information technology sector was granted Rs 5.86 billion in tax relief.
Further exemptions included Rs 3.49 billion in sales tax relief for the health and pharmaceutical sectors. The fertilizer and agriculture sectors collectively received around Rs 457.92 billion in sales tax exemptions, while power generation companies were granted Rs 5.77 billion in relief.
In addition, the health and medical equipment sector was provided tax exemptions totaling Rs 313.66 billion during the period under review.
