Pakistan granted tax exemptions worth more than Rs11 trillion over five fiscal years, from 2020-21 to 2024-25, according to figures presented by the Finance Ministry in the National Assembly.

The ministry shared the data during question hour, outlining annual tax exemptions and concessions across different categories of taxation.

According to the figures, tax exemptions totalled Rs1,482.31 billion in fiscal year 2020-21. The amount then rose to Rs2,239 billion in 2021-22.

The total increased further to Rs2,540 billion in 2022-23 before falling to Rs2,434 billion in 2023-24 and Rs2,352 billion in 2024-25.

Tax Exemptions Remain Above Rs2 Trillion Annually

The figures show that annual tax exemptions exceeded Rs2 trillion in each of the final four fiscal years covered by the data.

Although the reported total declined in the last two years, it remained significantly higher than the amount recorded in 2020-21.

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The data highlights the scale of tax concessions granted during the five-year period. However, the figures alone do not establish the economic impact of these exemptions or the amount of additional revenue the government might have collected without them.

Finance Ministry Shares Category-Wise Breakdown

The ministry also reported tax exemptions across three categories:

• Income tax: Rs580 billion
• Sales tax: Rs1,274 billion
• Customs duties: Rs499 billion

These category-wise figures require further clarification to determine the exact period they cover and how they relate to the annual totals reported by the ministry.

A clearer breakdown would help establish which sectors or groups benefited from the concessions and how the exemptions affected government revenue.

The figures were presented to the National Assembly as part of the government’s disclosure of tax exemptions and concessions over the five fiscal years.