15 March 2024 04:00 am Views - 1118
The Treasury’s tax expenditure statement revealed that the government has foregone over Rs. 23 billion in corporate tax revenue in 2022 due to concessions granted to Board of Investment (BOI) approved companies.
According to the statement, the highest tax concessions, amounting to Rs.8.5 billion were enjoyed by the manufacturing sector, followed by Rs.5.42 billion by power and Rs. 5.2 billion by the apparel sector.
In terms of number of ventures, 170 firms in the manufacturing sector were entitled for tax concessions while 23 from the service and utility sector, and 94 from the tourism sector were entitled to tax benefits.
The taxable income for BOI companies as per the statement was Rs. 168 billion. The highest, Rs. 77 billion in manufacturing, Rs. 50 billion in the apparel sector, and Rs. 22 billion in the power sector.
The ‘tax expenditure’ is based on a 24 percent rate for the first nine months of 2022/2023 financial year and 30 percent for the remainder of the period.