Rs. 11.047 Trillion Tax Exemptions in 5 Years – Shocking Details

ISLAMABAD : In a startling disclosure, the Ministry of Finance has informed the National Assembly that the government granted tax exemptions and concessions worth *Rs. 11,047 billion* during the last five fiscal years, from 2020-21 to 2024-25.

The details were presented in a written reply during the question hour session.

*Year-Wise Complete Breakup:*

– FY 2020-21: Rs. 1,482.31 billion
– FY 2021-22: Rs. 2,239 billion
– FY 2022-23: Rs. 2,540 billion – the highest in history
– FY 2023-24: Rs. 2,434 billion
– FY 2024-25: Rs. 2,352 billion

*Category-Wise Details Presented:*

The ministry disclosed exemptions under three major heads:

– Income Tax: Rs. 580 billion
– Sales Tax: Rs. 1,274 billion
– Customs Duty: Rs. 499 billion

The total of these three heads is Rs. 2,353 billion, while the overall exemption figure is Rs. 11,047 billion. The remaining amount of around Rs. 8,694 billion falls under other concessions and SRO-based exemptions, details of which have not been fully disclosed yet.

*Who Benefited?*

According to official sources, the exemptions were granted to:

– Power sector IPPs
– Real estate and industrial sector
– Importers of luxury and electric vehicles
– Industries in ex-FATA/PATA regions
– Textile, sugar and cement sectors

The disclosure has triggered a strong reaction in the House. Members questioned what benefit the common citizen received from exemptions worth over Rs. 11 trillion, while ordinary people continue to pay 18% sales tax, high electricity bills and expensive LPG.

The ministry also informed the House that the government is preparing a new policy to provide relief on LPG prices, with the Prime Minister holding two to three meetings on the issue. The proposed policy aims to ensure fair competition and provide subsidized fuel to vulnerable households.

The scale of exemptions has renewed debate on whether the tax system favours the elite, while the burden is shifted to the common man through mini-budgets and indirect taxes.