SUMMARY OF TAX EXPENDITURE 2021
Tax Expenditure Report 2021 for federal taxes, based on data pertaining to FY 201920, amounted to an estimated Rs. 1,314.27 billion. Tax expenditure in sales tax amounted highest at Rs. 578.46 billion (44% of the total), while in income tax amounted to Rs. 448.05 billion (34%), and in Customs, to Rs. 287.77 billion (22%). In last fiscal year 2019-20, FBR’s tax collection was Rs. 3,997.4 billion. Hence, tax expenditure to total collection ratio comes to about 33%, and tax expenditure to GDP ratio stands at around 3.2%.
The tax expenditure estimates are unadjusted amounts, meaning that elimination or repeal of a specific exemption would not necessarily produce the rupee amounts cited in this report. Actual receipts would depend on enforcement, taxpayer compliance, effective dates of legislation repealing the exemption, exact wording of any legislation, taxpayer’s behavior, and some other economic factors.
This report briefly outlines federal tax exemptions and concessions. These descriptions do not grant rights or impose obligations; rather, the tax laws and rules made thereunder determine actual tax liability. Each estimate is based on the best information available from public and private sources, including FBR’s database. It would be exceptionally burdensome on taxpayers to require detailed reporting of transactions corresponding to each of the exemption sections and clauses. No such detailed reporting is imposed by statute or rules. Consequently, tax returns do not contain data sufficient to estimate the value of all exemptions and exclusions.
Estimation requires identification of pertinent, useful data available from various external sources. Where exemptions identified in tables have not been estimated, it is because requisite data does not exist or have not been identified and acquired from an external source.
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Income Tax Estimates
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Summary of Tax Expenditure Estimates of Income Tax - FY 2021
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Contents (Rs. Million)
1 Allowances 37,318
2 Tax Credits 105,342
3 Exemptions from Total Income 267,115
4 Reduction in Tax Rates 124
5 Reduction in Tax Liability 2,839
6 Exemption from Specific Provisions 2,687
7 Others/Miscellaneous 32,621
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Total 448,046
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Allowances
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Legal Description Intended Estimate
Sr. Reference (Exemption or Concession) Beneficiary (Rs in Mln)
1 23 New business entities 30,110.00
2 23A Industrial undertaking set up in specified rural and 340.00
under developed areas or engaged in the
manufacturing of cellular mobile phones
3 60 Persons paying Zakat 1,116.38
4 60A Persons paying Workers’ Welfare Fund 2,522.40
5 60B Persons paying Workers’ Participation Fund 2,523.51
6 60C Individuals paying profit or share in rent and share
in appreciation for value of house on loan by banks etc 646.67
7 60D Individuals having income of less than Rs. 1.5 million, 59.13
paying tuition fee
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Total 37,318.09
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Tax Credits
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Sr. Legal Description Tax Credits
Reference (Exemption or Concession) Intended Estimate
Beneficiary (Rs in Mln)
======================================================================================================================
1 61 Tax credit for Persons giving charitable 2,869.91
donations charitable donations
2 62 Tax credit for investment in Persons (excluding
shares and life insurance companies) investing in 2,222.31
shares, sukuks, or life
insurance
3 62A Tax credit for investment in Persons (excluding 21.72
health insurance companies) investing in
health insurance
4 63 Tax credit for contribution to Eligible persons as 915.68
an Approved Pension Fund. defined in sub-
section (19A) of
section 2 of
Ordinance
5 64B Tax credit for employment Corporate manufacturing 57.40
generation by manufacturers sector
6 65B Tax credit for Non-Equity Corporate manufacturing 51,408.24
Investment in Plant & Machinery sector
7 65B Tax credit for Equity Investment Corporate manufacturing 10,857.36
sector
in Plant & Machinery
8 65C Tax credit for enlistment in Companies opting for 181.17
registered Stock Exchange enlistment in a registered
stock exchange
9 65D Tax credit for newly established Corporate industrial 5,193.57
industrial undertakings units (including
corporate dairy farming)
10 65E Tax credit for industrial Corporate industrial 13,131.81
undertakings established before units (including
the first day of July, 2011 corporate dairy farming)
11 100C Tax credit for Non-profit Non-profit organizations, 18,482.94
organizations, trusts or welfare trusts, welfare institutions
institutions
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Total 105,342.11
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Exemptions from Total Income
======================================================================================================================
1 3 Salary of foreign personnel Foreign experts 119.23
engaged by institutions of the working with Agha
Agha Khan Development Khan Development
Network Network, (Pakistan)
2 4 Salary received by Pakistani Employees (Pakistani 67.68
seafarers seafarers)
3 5 Foreign allowances (Government Employees (diplomats) 1,001.86
of Pakistan)
4 8 Pension received by a citizen of Employees 2,732.76
Pakistan from a former employer (pensioners)
5 9 Pensions (Government) Employees (retired 13,710.00
government servants &
military personnel)
6 12 Commutation of Pension Employees 9,642.77
(pensioners)
7 13 Gratuities Employees (recipients 695.47
of gratuity payments)
8 17 Income derived by the families Families and 2.10
and dependents of the dependents of the
Shaheeds belonging to the Civil Shaheeds belonging
Armed Forces of Pakistan to the Civil Armed
Forces
9 19 Encashment of leave Employees (retiring 1,139.86
preparatory to retirement personnel of Armed
Forces or Government
servant)
10 22 Payments from a provident fund Employees (recipient 6,686.92
to which the Provident Funds Act, of payments from
1925 applies. provident funds
11 23 The accumulated balance due Employees 246.41
and becoming payable to an participating in a
employee participating in a recognized provident
recognized provident fund. fund.
12 23A The accumulated balance up to Voluntary participants 79.63
[50]% received from a pension in pension funds
fund at the time of eligible person’s-
(a) retirement; or
(b) disability rendering him
unable to work; or
(c) death by his nominated
survivors.
13 23B Monthly installments from an Pensioners 25.17
income payment plan invested
with a pension fund manager
14 23C Withdrawal of accumulated Pensioners 147.75
balance from approved pension
fund
15 24 Benevolent grants paid from the Employees (recipient 482.90
Benevolent Fund (under Central of benevolent grants)
Employee Benevolent Fund and
Group Insurance Act, 1969)
16 25 Payments from an approved Families of deceased 43.97
superannuation fund made on the enrolled in approved
death of a beneficiary superannuation funds
17 26 Sums received by workers Low-income workers; -
from Workers Participation recipients of payments
Fund (WPF) from WPF
18 39 Special allowance or benefit for Employees receiving 947.76
employees to meet expenses payments to meet
incurred in the performance of the expenses in the
duties performance of duties
19 40 Income of a newspaper employee Newspaper employees-
representing Local Travelling
Allowance
20 53A Employment related Employees receiving 134.16
perquisites (food, education, employment-related
medical treatment and any perquisites.
other perquisites, if provided
by employer for free or at
subsidized rates)
21 55 House rent allowance (to Judiciary of Superior 35.00
judges of the Supreme Court of Courts
Pakistan or of High Courts)
22 56 Perquisites, benefits and Judiciary of Superior 290.00
allowances received by a Judge Courts
of Supreme Court of Pakistan
and Judge of High Court
23 57 (1) Any income from voluntary * National Investment 40.20
contributions, house property (Unit) Trust of Pakistan,
and investments in securities of Mutual Funds set up by
the Federal Government derived Investment Corporation
by the following, namely:- of Pakistan Sheikh
National Investment (Unit) Trust Sultan Trust Karachi.
of Pakistan Mutual Fund set up
by the Investment Corporation of
Pakistan, Sheikh Sultan Trust,
Karachi
24 57 (2) Income other than capital gain on Mutual funds,-
stock and shares of public investment companies,
company, PTC vouchers, collective investment
Modaraba certificates, or any schemes, REIT
instrument of redeemable capital schemes, Private
and derivative products held for Equity & Venture
less than 12 months derived by Capital Funds, and
any Mutual Fund, investment National Investment
company, or a collective (Unit) Trust of Pakistan
investment scheme or a REIT
Scheme or Private Equity and
Venture Capital Fund or the
National Investment (Unit) Trust
of Pakistan, if not less than ninety
per cent of its income of that year
is distributed amongst the Unit-
holders.
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Any income of the following funds and institution
======================================================================================================================
25 57 (3) (i) a provident fund to which Provident Funds 1,783.60
the Provident Funds Act, 1925
applies;
26 57 (3) (ii) trustees on behalf of a Trustees of recognized 13,120.00
recognized provident fund or an provident funds,
approved superannuation fund or approved
an approved gratuity fund; superannuation funds,
and approved gratuity
funds
27 57 (3) (iii) a benevolent fund or group Benevolent funds and 138.60
insurance scheme approved by group insurance
the Board for the purposes of this schemes
clause;
28 57 (3) (iv) Service Fund; Service Funds; -
29 57 (3) (v) Employees Old Age Benefits Employees Old Age 5,465.78
Institution established under the Benefits Institution
Employees Old Age Benefit Act,
1976 (XIV of 1976);
30 57 (3) (vii) any Unit, Station or Units, Stations or -
Regimental Institute; and Regimental Institutes
31 57 (3) (vi) any recognized Regimental Regimental Thrift and -
Thrift and Savings Fund, the assets Savings Funds
of which consist solely of deposits
made by members and profits
earned by investment thereof;
32 57 (3) (viii) a Pension Fund approved by Approved Pension 740.18
the SECP Funds
33 57 (3) (ix) any profit or gain or benefit Pension funds under 15.00
derived by a pension fund the Voluntary Pension
manager from a pension Fund System Rules 2005
approved under the Voluntary
Pension System Rules, 2005, on
redemption of the seed capital
invested in pension fund as
specified in the Voluntary Pension
System Rules, 2005;
34 57 (3) (xi) International Irrigation International Irrigation 0
Management Institute. Management Institute
35 57 (3) (xii) Punjab Pension Fund Punjab Pension Fund 2,271.37
established under the Punjab
Pension Fund Act, 2007 (I of
2007) and the trust established
thereunder.
36 57 (3) (xiii) Sindh Province Pension Sindh Province 1,162.26
Fund established under the Pension Fund
Sindh Province Pension Fund
Ordinance, 2002.
37 57 (3) (xiv) Punjab General Punjab General 161.10
Provident Investment Fund Provident Investment
established under the Punjab Fund
General Provident Investment
Fund Act, 2009 (V of 2009)
and the trust established
thereunder.”
38 57 (3) (xv) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 219.18
Retirement Benefits and Death Retirement Benefits
Compensation Fund. and Death
Compensation Fund
39 57 (3) (xvi) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 1,118.03
General Provident Investment General Provident
Fund. Investment Fund
40 57 (3) (xvii) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 1,465.68
Pension Fund ; Pension Fund
======================================================================================================================
Any amount paid as donation to the following institution,
foundations, societies, boards, trusts and funds
======================================================================================================================
41 61 (i) any Sports Board or ibid n.a.
institution recognized by the
Federal Government for the
purposes of promoting,
controlling or regulating any
sport or game ibid 431.52
42 61 (ia) The Citizens Foundation ibid -
43 61 (iii) Fund for Promotion of
Science and Technology in
Pakistan ibid -
44 61 (iv) Fund for Retarded and
Handicapped Children ibid n.a.
45 61 (v) National Trust Fund for the
Disabled ibid n.a.
46 61 (vii) Fund for Development of
Mazaar of Hazrat Burri Imam ibid n.a.
47 61 (viii) Rabita-e-Islami’s
Project for printing copies of
the Holy Quran
48 61 (ix) Fatimid Foundation, Karachi ibid 15.83
49 61 (x) Al-Shifa Trust ibid -
50 61 (xii) Society for the Promotion of ibid -
Engineering Sciences and
Technology in Pakistan
51 61 (xxiii) Citizens-Police Liaison ibid -
Committee, Central Reporting
Cell, Sindh Governor House,
Karachi
52 61 (xxiv) ICIC Foundation ibid -
53 61 (xxvi) National Management ibid -
Foundation
54 61 (xxvii) Endowment Fund of the ibid -
institutions of the Agha Khan
Development Network
55 61 (xxviii) Shaheed Zulfiqar Ali ibid n.a.
Bhutto Memorial Awards Society
56 61 (xxix) Iqbal Memorial Fund ibid -
57 61 (xxx) Cancer Research ibid -
Foundation of Pakistan,
Lahore
58 61 (xxxi) Shaukat Khanum ibid 1,026.20
Memorial Trust, Lahore
59 61 (xxxii) Christian Memorial ibid 0.01
Hospital, Sialkot
60 61 (xxxiii) National Museums, ibid n.a.
National Libraries and
Monuments or Institutions
declared to be National
Heritage by the Federal
Government
61 61 (xxxiv) Mumtaz Bakhtawar ibid 8.31
Memorial Trust Hospital, Lahore
62 61 (xxxv) Kashmir Fund for ibid n.a.
Rehabilitation of Kashmir
Refugees and Freedom Fighters
63 61 (xxxvi) Institutions of the ibid 227.00
Agha Khan Development
Network (Pakistan)
64 61 (xxxvii) Azad Kashmir President’s ibid -
Mujahid Fund, 1972; National
Institute of Cardiovascular Diseases,
(Pakistan) Karachi; Businessmen
Hospital Trust, Lahore; Premier Trust
Hospital, Mardan; Faisal Shaheed
Memorial Hospital Trust, Gujranwala;
Khair-un-Nisa Hospital Foundation,
Lahore; Sind and Balochistan
Advocates Benevolent Fund; Rashid
Minhas Memorial Hospital Fund.
65 61 (xxxviii) Any relief or welfare ibid -
fund established by the Federal
Government;
66 61 (xxxix) Mohatta Palace Gallery ibid -
Trust
67 61 (xl) Bagh-e-Quaid-e-Azam ibid -
project, Karachi
68 61 (xli) Any amount donated for ibid -
Tameer-e-Karachi Fund
69 61 (xlii) Pakistan Red Crescent ibid -
Society
70 61 (xliii) Bank of Commerce and ibid n.a.
Credit International Foundation
for Advancement of Science
and Technology
71 61 (xliv) Any amount donated to ibid -
Federal Board of
Revenue Foundation.
72 61 (xlv) The Indus Hospital, Karachi ibid 460.70
73 61 (xlvi) Pakistan Sweet Homes ibid -
Angels and Fairies Place
74 61 (xlvii) Al-Shifa Trust Eye ibid 33.53
Hospital
75 61 (xlviii) Aziz Tabba Foundation ibid 163.52
76 61 (xlix) Sindh Institute of Urology ibid 142.42
andTransplantation, SIUT Trust
and Society for the Welfare of SIUT
77 61 (i) Sharif Trust ibid 157.41
78 61 (ii) The Kidney Centre Post ibid -
Graduate Institute
79 61 (Iii) Pakistan Disabled ibid -
Foundation
80 61 (Iiii) Sardar Trust Eye Hospital, ibid -
Lahore
81 61 (Iiv) Supreme Court of ibid -
Pakistan Diamer Bhasha &
Mohmand Dams
82 61 (lv) Layton Rahmatullah ibid 270.36
Benevolent Trust (LRBT)
83 61 (lvi) Akhuwat ibid 209.32
84 61 The Prime Minister Covid-19 ibid -
Pandemic Relief Fund 2020
85 61 Ghulam Ishaque Khan ibid -
Institute of Engineering
Science & Technology
86 61 Lahore University of ibid 72.42
Management Sciences (ivx)
Dawat-e-Hadiya Karachi
87 61 Baitussalam Welfare Trust ibid 144.65
88 61 Patient’s Aid Foundation ibid 60.92
89 61 Alkhidmat Foundation ibid 3.04
90 62 Alamgir Welfare Trust ibid 263.34
International
91 64A Any amount donated to the Persons making -
Prime Minister’s Special Fund donations into the said
for victims of terrorism Fund.
92 64B Any amount donated to the Persons making -
Chief Minister’s (Punjab) Relief donations into the said
Fund for Internally Displaced Fund.
Persons (IDPs) of NWFP.]
93 64C Prime Minister’s Flood Relief Persons making -
Fund 2010 and Provincial donations into the said
Chief Ministers’ Relief Funds, Fund.
for victims of flood 2010.
94 65A Income for any tax year Emigrants and their -
commencing from the tax year families in Pakistan
2003, derived from the Welfare
Fund created under rule-26 of
the Emigration Rules, 1979
(made under section 16 of the
Emigration Ordinance, 1979
(XVIII of 1979), except the in-
come generated by the
aforesaid Fund through
commercial activities.
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Any income derived by following entities: Specific Entities by name
======================================================================================================================
95 66 i. Abdul Sattar Edhi Abdul Sattar Edhi 870.84
Foundation, Karachi Foundation, Karachi
96 66 ii. Al-Shifa Trust, Rawalpindi Al-Shifa Trust, -
Rawalpindi
97 66 iii. Bilquis Edhi Foundation, Bilquis Edhi 429.47
Karachi Foundation, Karachi
98 66 iv. Fatimid Foundation, Fatimid Foundation, -
Karachi Karachi
99 66 vi. International Islamic Trade International Islamic -
Finance Corporation Trade Finance
Corporation
100 66 vii. Islamic Corporation for Islamic Corporation for -
Development of Private Sector Development of Private
Sector
101 66 viii. National Memorial Bab-e- National Memorial Bab- -
Pakistan Trust e-Pakistan Trust
102 66 ix. Pakistan Agricultural Pakistan Agricultural 0.40
Research Council, Islamabad Research Council,
Islamabad
103 66 x. Pakistan Engineering Pakistan Engineering 480.10
Council Council
104 66 xi. The corporatized entities of The corporatized 5,209.13
Pakistan Water and Power entities of Pakistan
Development Authority Water and Power
Development Authority
105 66 xii. The Institution of The Institution of 11.00
Engineers, Pakistan, Lahore Engineers, Pakistan,
Lahore
106 66 (xiia) The Prime Minister’s The Prime Minister’s -
Special Fund for victims of Special Fund for victims
terrorism of terrorism
107 66 (xiib) Chief Minister’s (Punjab) Chief Minister’s -
Relief Fund for Internally (Punjab) Relief Fund for
Displaced Persons (IDPs) of Internally Displaced
NWFP Persons (IDPs) of
NWFP
108 66 xiii. The Institutions of the The Institutions of the 1,445.65
Agha Khan Development Agha Khan
Network (Pakistan) Development Network
(Pakistan)
109 66 xiv. The Liaquat National The Liaquat National 196.01
Hospital Association, Karachi Hospital Association,
Karachi
110 66 xv. The Pakistan Council of The Pakistan Council of 125.11
Scientific and Industrial Scientific and Industrial
Research Research
111 66 xvi. The Pakistan Water and The Pakistan Water and 19,496.60
Power Development Authority Power Development
Authority
112 66 xvii. WAPDA First Sukuk WAPDA First Sukuk -
Company Limited Company Limited
113 66 (xix) Pension of a former Former Presidents of -
President of Pakistan and his Pakistan and their
widow under the President widows
Pension Act, 1974
114 66 (xx) State Bank of Pakistan State Bank of Pakistan 48,514.55
and State Bank of Pakistan and State Bank of
Banking Services Corporation Pakistan Banking
Services Corporation
115 66 (xxi) International Finance International Finance -
Corporation Corporation
116 66 (xxii) Pakistan Domestic Pakistan Domestic -
Sukuk Company Ltd Sukuk Company Ltd
117 66 (xxiii) The Asian Development The Asian Development -
Bank Bank
118 66 (xxiv) The ECO Trade and The ECO Trade and 552.51
Development Bank Development Bank
119 66 (xxv) The Islamic Chamber of The Islamic Chamber of -
Commerce and Industry under Commerce and Industry
the Organization of Islamic under the Organization
Conference (OIC) of Islamic Conference
(OIC)
120 66 (xxvi) COMSATS COMSATS -
121 66 (xxvii) WAPDA on issuance of WAPDA -
twenty billion rupees
TFC’s/SUKUK certificates for
consideration of Diamer
Bhasha Dam Projects
122 66 (xxviii) Federal Board of Federal Board of -
Revenue Foundation Revenue Foundation
123 66 (xxix) WAPDA Second Sukuk WAPDA Second Sukuk -
Company Limited Company Limited
124 66 (xxx) The Citizens Foundation The Citizens 66.07
Foundation
125 66 (xxxi) Sindh Institute of Sindh Institute of 918.73
Urology and Transplantation, Urology and Trans-
SIUT Trust and Society for the plantation, SIUT Trust
Welfare of SIUT and Society for the
Welfare of SIUT
126 66 (xxxii) Greenstar Social Greenstar Social 82.94
Marketing Pakistan Marketing Pakistan
(Guarantee) Limited (Guarantee) Limited
127 66 (xxxiii) Pakistan International Pakistan International n.a.
Sukuk Company Limited Sukuk Company
Limited
128 66 (xxxiii) The Indus Hospital, The Indus Hospital, 120.52
Karachi Karachi
129 66 (xxxiv) Second Pakistan Second Pakistan -
International Sukuk Company International Sukuk
Limited Company Limited
130 66 (xxxv) Third Pakistan Third Pakistan -
International Sukuk Company International Sukuk
Limited Company Limited
131 66 (xxxvi) Asian Infrastructure Asian Infrastructure -
Investment Bank and persons Investment Bank
as provided in Article 51 of
Chapter IX of the Articles of
Agreement signed and ratified
by Pakistan and entered into
force on the 25th December,
2015.
132 66 (xxxvii) Gulab Devi Chest Gulab Devi Chest -
Hospital. Hospital.
133 66 (xxxviii) Pakistan Poverty Pakistan Poverty 617.33
Alleviation Fund. Alleviation Fund.
134 66 (xxxix) National Academy of National Academy of 5.20
Performing Arts. Performing Arts.
135 66 (xl) Pakistan Sweet Homes Pakistan Sweet Homes 19.37
Angels and Fairies Place. Angels and Fairies
Place.
136 66 (xli) National Rural Support National Rural Support 420.10
Programme. Programme.
137 66 (xlii) SAARC Energy Centre. SAARC Energy Centre. -
138 66 (xliii) Pakistan Bar Council. Pakistan Bar Council. 0.74
139 66 (xliv) Pakistan Centre for Pakistan Centre for 5.11
Philanthropy. Philanthropy.
140 66 (xlv) Pakistan Mortgage Pakistan Mortgage 264.18
Refinance Company Limited. Refinance Company
Limited.
141 66 (xlvi) Aziz Tabba Foundation. Aziz Tabba Foundation. 46.12
142 66 (l) Al-Shifa Trust Eye Hospital. Al-Shifa Trust Eye n.a.
Hospital.
143 66 (li) Saylani Welfare Saylani Welfare 34.00
International Trust. International Trust.
144 66 (lii) Shaukat Khanum Memorial Shaukat Khanum 2200.66
Trust. Memorial Trust.
145 66 (liii) Layton Rahmatullah Layton Rahmatullah -
Benevolent Trust (LRBT). Benevolent Trust
(LRBT).
146 66 (liv) The Kidney Centre Post The Kidney Centre Post 14.00
Graduate Training Institute. Graduate Training
Institute.
147 66 (lv) Pakistan Disabled Pakistan Disabled -
Foundation. Foundation.
148 66 (lvi) Forman Christian Forman Christian 94.47
College; College;
149 66 (lvii) Habib University Habib University 3.21
Foundation. Foundation.
150 66 (lviii) Begum Akhtar Rukhsana Begum Akhtar -
Memorial Trust Hospital. Rukhsana Memorial
Trust Hospital.
151 66 (lix) Al-Khidmat Foundation. Al-Khidmat Foundation. -
152 66 (lx) Dawat-e-Islami Trust Dawat-e-Islami Trust 263.38
153 66 (Ixi) Sardar Trust Eye Hospital, Sardar Trust Eye -
Lahore. Hospital, Lahore.
154 66 (lxii) Supreme Court of Supreme Court of 0.30
Pakistan Diamer Bhasha & Pakistan Diamer
Mohmand Dams Fund Bhasha & Mohmand
Dams Fund
155 66 (lxiii) National Disaster Risk National Disaster Risk 57.20
Management Fund. Management Fund.
156 66 (lxiv) Deposit Protection Deposit Protection 4,377.60
Corporation Corporation (Already
accounted for under
sub-clause (xx) under
consolidated figure for
SBP)
157 66 (lxv) Sarmaya-e-Pakistan Sarmaya-e-Pakistan -
Limited Limited
158 66 (lxvi) Akhuwat (lxvi) Akhuwat 192.86
159 66 (lxvii) Audit Oversight Board. Audit Oversight Board. 5.68
160 66 (lxviii) Patient’s Aid Patient’s Aid 13.00
Foundation. Foundation.
161 72A Any income derived by Sukuk Sukuk holders 3,436.50
holder in relation to Sukuk
issued by “The Second
Pakistan International Sukuk
Company Limited” and the
Third Pakistan International
Sukuk Company Limited,
including any gain on disposal
of such Sukuk.
162 74 Profit on debt derived by Hub Hub Power Company 9.37
Power Company Limited on or Limited
after the first day of July,1991
163 75 Any income of an agency of a Agencies of foreign 7,362.80
foreign Government, a foreign Governments, foreign
national (company, firm or nationals or any other
association of persons), or any non-resident person
other Nonresident person approved by the
approved by the Federal Federal Government
Government for the purposes
of this clause, from profit on
moneys borrowed under a
loan agreement or in respect
of foreign currency instrument
approved by the Federal
Government.
164 78 Profit on debt on foreign Foreign currency n.a.
currency accounts account holders
165 79 Profit on debt derived by non- Citizens of Pakistan n.a.
resident Pakistanis on rupee residing abroad and
accounts remitting foreign
exchange
166 80 Income derived from a private Foreign currency -
foreign currency account held account holder resident
with an authorized bank in individual citizens of
Pakistan, or certificate of Pakistan
investment issued by
investment banks, by a
resident individual who is a
citizen of Pakistan: (This
exemption is not available in
respect of any incremental
deposits made in the said
accounts on or after the 16th
day of December, 1999)
167 90 Profit on debt payable by Financial institutions in n.a.
Pakistani industrial foreign countries
undertakings to financial lending with approval of
institutions in foreign countries Federal Government of
Pakistan
168 90A Profit on debt derived by any Investors/buyers of 4.20
person on bonds issued by bonds issued by
Pakistan Mortgage Refinance Pakistan Mortgage
Company to refinance the Refinance Company
residential housing mortgage
market, for a period of five
years
169 91 Text-book boards of Provinces Text-book boards of 583.40
provinces
170 98 Sports Boards (except Regulators, 61.84
Pakistan Cricket Board). organizations and
boards established by
government to en-
courage major games
and sports
171 99 Collective Investment Collective Investment 16,176.50
Schemes or a REIT Schemes Schemes and REIT
Schemes that are
distributing more than
90% of their incomes to
certificate holders/
shareholders.
172 99A Profits and gains on sale of Taxpayers selling -
immovable property to a REIT immovable property to
Scheme a Developmental REIT
Scheme or a rental
REIT Scheme
173 100 Modarabas Modarabas 261.25
174 101 Venture capital companies & Venture capital 3.63
venture capital funds companies venture
registered under Venture capital funds, and
Capital Companies and Funds Private Equity &
Management Rules, 2000 and Venture Capital Funds.
a Private Equity and Venture
Capital Funds
175 102A Income representing a subsidy Recipients of subsidies 4,508.87
granted by the Federal granted by Federal
Government Government
176 103 Distributions received by a Investors investing in 1.00
taxpayer from collective debt or money market
investment schemes or mutual mutual funds and
funds (which are debt or collective investment
money market funds and do schemes
not invest in shares) out of
capital gains
177 104 Income derived by the Libyan Libyan Arab Foreign -
Arab Foreign Investment Investment Company
Company being dividend of the
Pak-Libya Holding Company.
178 105 Income derived by the Government of 26.00
Government of Kingdom of Kingdom of Saudi
Saudi Arabia being dividend of Arabia
the Saudi-Pak Industrial and
Agricultural Investment
Company Limited.
179 105A Income derived by Kuwait Kuwait Foreign Trading 67.50
Foreign Trading Contracting Contracting &
and Investment Company or Investment Company,
Kuwait Investment Authority and Kuwait Investment
being dividend of the Pak Authority
Kuwait Investment Company
in Pakistan
180 105B Income received by a taxpayer Taxpayers receiving 44.00
from a corporate agricultural dividend income from
enterprise, distributed as corporate agricultural
dividend out of its income from enterprises
agriculture.
181 110B Any gain on transfer of a Members of Stock -
capital asset, being a Exchange
membership right held by a
member of an existing stock
exchange, for acquisition of
shares and trading or clearing
rights acquired by such
member in new corporatized
stock exchange in the course
of corporatization of an
existing stock exchange.
182 110C Any gain by a person on Persons deriving gain -
transfer of a capital asset, being from bonds issued by
a bond issued by Pakistan Pakistan Mortgage
Mortgage Refinance Company Refinance Company
to refinance the residential
housing mortgage market,
during the period from the 1st
day of July, 2018 till the 30th day
of June, 2023.
183 114 Income under the head "capital Industrial undertakings n.a.
gains" derived by industrial set up in "Zones" within
undertakings set up in a "Zone" the meaning of Export
within the meaning of the Processing Zones
Export Processing Zones Authority Ordinance
Authority Ordinance, 1980
184 126 Public sector universities Public sector 10,715.95
universities
185 126A Income derived by China Listed companies 65.12
Overseas Ports Holding
Company Limited, China
Overseas Ports Holding
Company Pakistan (Private)
Limited, Gawadar
International Terminal Limited,
Gawadar Marine Services
Limited and Gawadar Free
Zone Company Limited from
Gawadar Port o
