The Federal Board of Revenue (FBR), in its latest Tax Expenditure Report 2025, has disclosed the revenue losses incurred due to nine export-related schemes and Statutory Regulatory Orders (SROs).
Under the first exemption notification, SRO 450(I)/2001 pertaining to the Duty and Tax Remission for Export (DTRE) scheme, there was a revenue impact of Rs. 734.66 million during the fiscal year 2023-24.
For the same fiscal year, the Export Processing Zones scheme under SRO 450(I)/2001 accounted for a substantial revenue impact of Rs. 23 billion on the national exchequer.
The revenue impact of SRO 450(I)/2001 related to the Export Facilitation Scheme was reported to be minimal.
According to the report, SRO 327(I)/2008 concerning Export Oriented Units (EOUs) resulted in a revenue loss of Rs. 2 billion during the period. However, a similar exemption under SRO 326(I)/2008 had a negligible impact on FBR’s revenue.
Another export-related exemption under SRO 450(I)/2001, specifically for the Manufacturing Bond Scheme, led to a revenue loss of Rs. 712 million.
SRO 492(I)/2009, which governs the Temporary Importation Scheme, caused an estimated revenue impact of around Rs. 17 billion in FY 2023-24.
The Pakistan Customs Tariff’s Chapter 99 (Exemptions) had an almost negligible impact on revenue. This chapter covers temporary imports of raw materials, packing materials, machinery and equipment for repair, and professional tools meant for subsequent export as finished goods.
The report further mentioned that other categories under Chapter 99 include temporary imports of excavation machinery, scientific instruments, and machinery brought in for exhibition purposes, all of which were granted exemptions.
