ISLAMABAD - The government gave tax exemptions worth Rs 166.772 billion during the outgoing financial year 2010-2011 against Rs 150.291 billion during the previous fiscal year. According to the Economic Survey 2010-2011, the cost of exemptions in respect of direct taxes are Rs 46.508 billion during the outgoing fiscal year, which was Rs 46.435 billion in last financial year 2009-10. Meanwhile, the cost of sales tax exemption has been estimated to be Rs 25.323 billion for the fiscal year 2010-2011, which was Rs 27.409 billion in last fiscal year. Similarly the cost of customs exemptions has been projected to be Rs 94.941 billion against Rs 76.348 billion in the previous year. The break-up of estimated revenue loss in income tax expenditures revealed that Rs 0.087 billion revenue loss occurred due to exemption given to pensions and gratuity, Rs 0.979 billion on income from funds, board of education, universities and computer training institutions, Rs 0.649 billion on donations and contributions to charitable organisations, Rs 0.870 billion on independent power producers and Rs 1.360 billion on income from certain trust, welfare and charitable institutions non-profit organisations. Similarly, income tax exemption worth Rs 0.049 billion was given to the profits on debt/interest from government securities and certain foreign currency accounts etc, Rs 0.724 billion on export of information technology, Rs 21.840 billion on capital gains and Rs 19.950 billion on other sector and enterprise specific exemptions during the outgoing financial year. According to the survey, the government rationalised the extent of sales tax exemptions on tractors, fertilisers, pharmaceuticals and pesticides in March and imposed sales tax on these goods. However before this, all these commodities were exempted from sales tax and according to the estimates, Rs 25.323 billion exemptions were given before March 2011, which was Rs 27.409 billion in last fiscal year. The break-up of sales tax exemptions revealed that Rs 6.854 billion exemptions were given to fertilisers, Rs 4.867 billion on tractors, Rs 4.129 billion on pharmaceutical and Rs 9.473 billion on others during July to March 15 in the outgoing financial year. Meanwhile, customs exemptions were mainly given on raw materials and components, plants, machinery and equipment imported by high-tech, priority and value added industries, imports for energy sector projects and exemptions to exploration and production companies. Some of these exemptions are due to international contractual obligations. The government gave Rs 94.941 billion customs exemptions during the outgoing fiscal year against Rs 76.348 billion of the last year 2009-10. It is worth mentioning here that the government has decided to eliminate all tax exemptions in the upcoming financial year 2011-2012, which might help the government in achieving its annual tax collection target of Rs 1,952 billion set for the next fiscal year.