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Tax exemptions fall to PKR 2.35tn, first drop in 7yr

Pakistan's total tax expenditure dropped 3.37% to PKR 2.353tn in FY26 from PKR 2.434tn, the first decline after seven years of increases. Sales tax exemptions still rose 2.9% to PKR 1.273tn while zero-rated exemptions collapsed 89% to PKR 8.77bn.

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About Federal Board of Revenue (FBR)

Pakistan's federal revenue authority. It administers income tax, sales tax, and customs, and runs the IRIS e-filing portal where individuals and companies file their annual returns.

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