Government experienced Huge Revenue Loss Due to Tax-Related Deductions

Because of the granting of sales tax, income tax, and customs duties state subsidies of Rs 1.149.95 trillion in 2019-20, it has suffered a large loss of income of Rs. 1.31 4.3 trillion during 2020-21, which shows a rise of 14.36 percent.

Data on fiscal spending and the effects of the waivers were published in the Economic Survey of 2020-21 (Thursday).

It revealed that the cost of provisions to sales tax amounted to Rs. 578.456 billion in 2020-21 versus Rs. 518.814 billion in 2019-20; this figure shows an increase to Rs. 59.642 billion, income tax rs. 448.046 billion versus RR. 378.03 billion, and the cost of provisions from customs duties was Rs. 287.771 billion in 2020-21 versus Rs. 253.11 billion in the period 2019-20, showing an increase of Rs. 70.016 billion

In the 2020-21 budget, the administration introduced Rs. 49.3 billion alleviation measures. The relief measures for customs tax amounted to Rs 25 billion. The domestic income relief (sales tax, income tax, and duty) was 26 billion rs.; the domestic revenue relief measures stood at 1,7 billion rs. The net impact of the domestic revenue measures amounted to 24,3 billion rs. The entire net impact of the relief actions for 2020-21, therefore, amounted to Rs. 49.3bn.

Last year, the elevated on the Federal Board of Income (FBR) predicted that through efficient enforcement and expansion of the restricted tax base in 2020-21, the tax apparatus might produce 200 billion to 300 billion rupees.