Economics of Tax Expenditures by FBR; A Debate for Reforms

Use of tax expenditure around the world and in Pakistan, Sales Tax Act, 1990, Income Tax Ordinance, 2001, Customs Act, 1969 and Federal Excise Act, 2005, Concessions and exemptions costed GoP 1.2 trillion rupees for FY2020 which is 31% of the FBR revenues for the same year., Guaging opportunity cost of these expenditures is very important on providing basic amenities of life, education, medical, housing and transport and above all servicing of mounting debt.