Annual tax exemptions hit record Rs3.9tr

The annual cost of tax losses due to various exemptions has surged to a record Rs3.9 trillion in the current fiscal year, a 73% increase from last year, becoming a contentious issue in ongoing negotiations between Pakistan and the International Monetary Fund (IMF). The Economic Survey of Pakistan 2024, released by Finance Minister Muhammad Aurangzeb on Tuesday, revealed that despite multiple rounds of withdrawal of tax concessions and exemptions, the amount continues to rise annually. These tax exemptions, approved over the years, are protected under existing tax laws.