Pakistan's government granted massive tax exemptions amounting to Rs5,840 billion across various sectors during the current fiscal year, according to the Economic Survey 2024-25 released on Monday.

The majority of these exemptions came in the form of sales tax waivers, aimed at stimulating economic activity and supporting key industries.

The document highlights that sales tax exemptions alone accounted for over Rs4,253 billion, making it the largest category of relief extended to businesses and consumers. This included Rs87.95 billion in sales tax relief on mobile phones, a move likely intended to support digital access and telecom penetration across the country.

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Additionally, income tax exemptions exceeded Rs800 billion, while customs duty exemptions amounted to more than Rs785 billion during the fiscal year.

Among the sectors receiving targeted relief, the former FATA and PATA regions were granted tax exemptions worth Rs61 billion, continuing the government’s policy of integrating these regions into the national economic framework.

The automobile and CPEC-linked sectors benefited from exemptions totalling Rs133 billion, underscoring the state’s commitment to infrastructure development and industrialization. Meanwhile, the export sector was granted Rs178 billion in customs duty relief.