The cost of tax exemptions and concessions increased by 16.32 percent to Rs239.53 billion in fiscal year 2012/2013 comparing with Rs205.92 billion in the the last fiscal year. The burden of tax expenditure during the outgoing fiscal year stood at 12.28 percent considering the estimated revenue collection of Rs1950 billion, according to the Economic Survey for the fiscal year 2012-2013 released on Tuesday. The highest cost of such facility incurred on customs duty to the tune of Rs119.7 billion during the outgoing fiscal year as against Rs 112 billion in the last fiscal year. It is followed by Income Tax Rs82.39 billion from Rs69.61 billion and Sales Tax Rs37.43 billion from Rs24.3 billion. Under the head of Customs duty, the exemptions are mainly given on raw materials and components, plant and machinery imported by industries particularly export oriented sectors. Some of these exemptions are on account of international bilateral/multilateral agreements with Pakistan’s trading partners like China, Malaysia and SAARC countries. Following is the break-up of estimates of tax expenditures of main exemptions in customs duties for fiscal year 2012-13 1. Rs. 121.9 million concession of customs duty on goods imported from SAARC and ECO countries (FTA). 2. Rs. 634.6 million exemption from customs duty on imports from Sri Lanka(FTA) 3. Rs 1.3 million exemption from customs duty on import into Pakistan from China 4. Rs. 3.1 million exemption from customs duty on import from Iran under Pak-Iran PTA 5. Rs 494.2 million exemption from customs duty under SAFTA Agreement. 6. Rs 21,932.2 million exemption from customs duty on import from China (FTA). 7. No revenue loss on exemption from customs duty on goods imported from Mauritius. 8. Rs 2,753.3 million exemption from customs duty on import into Pakistan from Malaysia. 9. Rs 9,160.0 million conditional exemption from customs duty on import of raw materials and components etc. for manufacture of certain goods (Survey based). 10. Rs. 28,138.9 million general and conditional exemption of customs duty (non survey). 11. Rs 6,110.3 million exemption from customs duty and sales tax to exploration and production (E&P) companies on import. 12. Rs 18,506.3 million exemption from customs duty and sales tax on import of specified items. 13. Rs 11,052.3 million exemption from customs duty for vendors of automotive sector. 14. Rs 19,302.1 million exemption from customs duty for OEMs of automotive sector. 15. Rs 1,495.8 million exemption from customs duty for Textile Industry. The tax expenditures in respect of direct taxes during 2012-13 were estimated as: 1. Pensions & Gratuity: Rs800 million. 2. Income from Funds, Board of Education, Universities and Computer Training Institutions: Rs9,100 million. 3. Donations and contributions to charitable: Rs1,300 million. 4. Independent Power Producers: Rs48,600 million. 5. Income from certain trust, welfare and charitable institutions nonprofitable organisation: Rs600 million. 6. Profits on debt/interest from government securities and certain foreign currency accounts/books profit on debt: Rs2,000 million. 7. Export of information technology: Rs 993 million 8. Capital gains: Rs4,000 million 9. Other Sector and enterprise specific exemptions: Rs15,000 million. The revenue loss on Sales Tax Exemption is as follow: 1. Tractor (Partially Exempt) Rs 2,140 million 2. Pharmaceutical products Rs7,076 million 3. Sugar( partially Exempt) Rs12,000 million 4. Other Rs16,220 million.
Posted on: Fri, 14 Jun 2013 09:12:34 +0000
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