Tax exemptions and concessions granted by the government amounted to Rs2.353 trillion during FY2025-26, according to the National Economic Survey released Tuesday ahead of the federal budget.
The survey revealed that sales tax exemptions accounted for the largest share of tax expenditures, amounting to Rs1.274 trillion during the fiscal year.
According to the report, income tax exemptions totalled Rs580 billion, while customs duty exemptions amounted to Rs499 billion.
The survey said sales tax exemptions on goods covered under the Sixth Schedule of tax laws accounted for a significant portion of the overall relief provided by the government.
Of the total, Rs306 billion related to exemptions on local supplies, while Rs261 billion was linked to imports covered under the Sixth Schedule.
The report further stated that tax exemptions and incentives associated with the automobile sector, exploration and production (E&P) activities and projects under the China-Pakistan Economic Corridor (CPEC) amounted to Rs276 billion.
In addition to exemptions, the government also provided tax concessions worth Rs636 billion during the fiscal year, according to the survey.
