Written by Hamza Shahnawaz in Taxation The Tax Expenditure Report 2026 shows customs duty exemptions fell to Rs205.65 billion in FY2024-25 from Rs379.75 billion a year earlier, covering industrial machinery, pharmaceuticals, electric vehicles and essential imports. The Federal Board of Revenue (FBR) has granted customs duty exemptions worth Rs205.65 billion under the Fifth Schedule of the Customs Act, 1969, during fiscal year 2024-25, according to the Tax Expenditure Report 2026. The report showed that the total exemption amounted to Rs205.654 billion, compared with Rs379.745 billion in FY2023-24, representing a decline of approximately 45.8%. Breakdown of customs duty exemptions The largest exemption was granted to poultry, textile and miscellaneous sectors under Part III of the Fifth Schedule, amounting to Rs76.11 billion during FY2024-25, compared with Rs161.70 billion in the preceding year. Importers of plant, machinery, equipment and apparatus for various industries received exemptions worth Rs38.47 billion, while the pharmaceutical sector benefited from Rs32.34 billion in customs duty relief on active pharmaceutical…