The tax credits granted across various sectors in the 2023-24 fiscal year led to a revenue loss of Rs 78.6 billion, according to the “Tax Expenditure Report-2025” released by the Federal Board of Revenue (FBR).
The report details the various tax credits that contributed to the loss, including those for charitable donations under section 61, contributions to the Approved Pension Fund under section 63, and employment generation incentives for the corporate manufacturing sector under section 64B.
Other credits cited in the report cover the installation of point of sale machines, non-equity investments in plant and machinery, and equity investments in the corporate manufacturing sector.
Additional tax credits were provided to corporate industrial units, including those in dairy farming and coal mining projects, as well as startups, exporters of IT services, and specified industrial undertakings investing in new plant machinery and equipment.
The report emphasizes the fiscal impact of these incentives on overall tax expenditure for the period.
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