Charter of the Economy There is also a big variation in inequality according to the latest HIES among different sources of income, as shown below: • Income from home remittances from abroad by family member • Income from property • Income from self-employment • Wages and Salaries • Income from domestic remittances by a family member AVERAGE Palma Ratio 15.6 11.2 7.0 4.2 2.4 7.1 9.3. Magnitude of Tax Breaks and Concessions The Feudal Elite The first group is the feudal elite. They enjoy a whole range of tax privileges in direct and indirect taxes as shown in Table 9.1. The biggest tax concession is in the Provincial agricultural income tax. The tax rates are extremely low and the actual revenue in 2018-19 from the country was Rs 3 billion equivalent to 0.03 percent of agricultural value-added. The additional revenues that could be generated if the tax rates are brought close to these prevailing on non-agricultural income on the tax base in 2020-21 is Rs 105 billion. Most of the other tax expenditures are in indirect taxes adding up to Rs 90 billion. Overall, the revenue loss annually due to the tax concessions to the feudal elite add up to Rs 195 billion on a conservative basis. Table 9.3: Tax Breaks and Concessions to the Feudal Elite(Rs in Billion) Tax Breaks/ Concessions Magnitude of Tax Expenditure* 2020-21 1. Extremely low rates of agricultural income tax** 105 2. Low rates of land revenue** 9 3. Low sales tax rate of 2% only of fertilizer 34 4. Lower sales tax rate on tractors of 8% 18 5. Lower effective stamp duty on land transactions** 24 6. Lower Petroleum Levy on LDO 5 TOTAL 195 *Tax expenditure is the estimated revenue loss due to the tax break or concession. ** Provincial Taxes Sources: Multiple 94