The National Assembly has been told that tax exemption in Pakistan crossed Rs11,000 billion over the five fiscal years from 2020-21 to 2024-25. The Ministry of Finance placed the year-by-year totals before the house, underlining how large the annual concessions have become.
How the five-year bill built up
Members heard that relief stood at Rs1,482 billion in 2020-21, then moved to Rs2,239 billion in 2021-22 and Rs2,540 billion in 2022-23. In both 2023-24 and 2024-25 the recorded figure was Rs2,352 billion. Added together, those amounts take the cumulative tax exemption in Pakistan past the Rs11,000 billion threshold cited in the briefing.
Questions on public benefit and IMF borrowing
Jamiat Ulema-e-Islam member Alia Kamran pressed the government on whether everyday households had seen any clear gain from such wide concessions. She also asked whether 2027 would be Pakistan’s last year of borrowing from the International Monetary Fund (IMF), the global lender that provides balance-of-payments support, citing the prime minister’s stated aim. The parliamentary secretary said he could not offer a hard guarantee, though he hoped 2027 would mark the end of that borrowing cycle.
Auto policy, EV relief and new levies
Separately, a mini-budget is being weighed so tax steps linked to a new automotive policy can be put into force. Under that plan, electric vehicles priced at or below $75,000 could keep a 1% sales tax—an arrangement described as roughly Rs85 billion in relief—even as the IMF is said to want the rate raised to 18%. Official papers point to covering the gap through a finance bill that would bring in Federal Excise Duty (FED, a federal levy on certain goods) and an Automotive Development Levy: 2% on engines from 1001cc to 2000cc, and 10% on engines of 2001cc and above, applying to locally built and imported petrol and internal-combustion vehicles. A 10% FED may also apply to electric cars priced above Rs20 million, alongside a carbon levy on petrol and ICE vehicles. Collection estimates tied to the package include Rs25 billion from the carbon levy, Rs37 billion from broader vehicle levies, and Rs45 billion from charges on commercial buses and trucks.
Timeline: what has happened so far
- 2020-21: Concessions recorded at Rs1,482 billion.
- 2021-22: Annual total rose to Rs2,239 billion.
- 2022-23: Highest year in the series at Rs2,540 billion.
- 2023-24 and 2024-25: Rs2,352 billion booked in each year.
- Recent NA sitting: Finance shared the five-year tally; debate turned to citizen benefit and an IMF exit by 2027.
- Current policy talks: Mini-budget options for EV sales-tax relief and offsetting auto levies.
Aasan alfaaz mein
Pichle paanch saalon mein Pakistan mein tax exemptions 11,000 arab rupay se zyada di gayi hain. Har saal yeh raqam hazaron arab mein rahi hai. Electric gaariyon par sasta sales tax rehne ki baat hai, lekin petrol aur bari engine wali gaariyon par naye levy aa sakte hain. Aam shehri ke liye asl sawal yeh hai ke in chhoton ka faida un tak pohoncha ya nahi.
