Rs1.27tr tax concessions drain federal revenue

MG News | June 12, 2026 at 07:25 PM GMT+05:00

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June 12, 2026 (MLN): Sales tax concessions and exemptions cost the federal government a staggering Rs1.27tr during the fiscal year 2024-25. This structural revenue loss accounts for the largest chunk of Pakistan’s overall tax expenditure, commanding 54.1% of the total federal revenue foregone.

According to official data, the healthcare and medical sector emerged as the primary beneficiary, walking away with Rs436.79bn in tax breaks.

Close behind was the fertilizer and agriculture sector, which secured Rs407.35 billion in concessions. Food sectors also claimed a notable Rs249.07bn.

Officials noted that while these measures are aimed at providing relief on essential goods, they heavily restrict the overall tax collection capacity of the state.

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