ISLAMABAD: The exemptions and concessions given to business and industry together (agribusiness, energy & mining, and general) make up 37 percent of the total tax expenditure of income tax during 2019-20.
According to the percentage wise breakup of income tax exemptions during 2019-20, the Federal Board of Revenue (FBR) has specified sectors and areas having major shares in the said income tax exemption. The FBR has divided all income tax exemptions and concessions into different areas and distributed them in terms of proportion and share of each area/sector.
The business & industry has the highest share of 28.6 percent in total income tax exemptions granted to different sectors/areas during 2019-20, FBR data revealed.
Out of total 100 percent income tax exemptions available to different sectors/areas during 2019-20, the share of business & industry - (General) stood at 28.6 percent. The State Apparatus has share of 22.1 percent; employment 15.7 percent; social security 8.4 percent; donations, charities and non-profit organizations 8.2 percent; business & industry - energy and mining 7.8 percent; international (non-residents) 2.9 percent; education, health, sports, & culture 2.0percent; financial sector 1.5percent; other category 1.2percent; savings & investment 1.0percent; science, Technology, & Innovation 0.5 percent; business & industry - agribusiness has a share of 0.2 percent in income tax exemptions available to different sectors/areas during 2019-20.
Tax expenditures (income tax) have been identified in the areas of state apparatus; social security; employment; donations, charities and NGOs; science, technology, & innovation; education, health, sports, & culture; business & industry - agribusiness; business & industry - energy and mining; business & industry - general; financial sector; savings & investment; international (non-residents), FBR report added.
Copyright Business Recorder, 2020
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