Agenda of Federal Tax Reforms In summary, the total tax expenditure, primarily in direct taxes, both Federal and Provincial, is given in Table 9.8. for 2020-21. The overall magnitude is Rs 1235 billion, equivalent to 2.6 percent of the GDP. Table 9.8: Estimated Magnitude of Tax Expenditure Due to Tax Breaks/ Concessions by Type of Taxpayer 2020-21 Tax Expenditure (Rs in Billion) FEUDAL ELITE 195 CORPORATE SECTOR 468 Non-Financial Companies 394 Financial Companies 74 LARGE TRADERS 226 HIGH-NET-WORTH PERSONS 386 TOTAL 1275 % of the GDP in 2020-21 2.7 Therefore, there is substantial scope for raising the tax-to-GDP ratio by almost 2.7 percent of the GDP primarily by reforms in the direct tax system of the country. 9.4. Taxation Measures in 2021-22 Budget The significant measures for increasing revenues or providing relief are listed below Measures for Increasing Revenue Customs Duty • Increase in regulatory duty on import of mobile phones, non-essential luxury items. Sales Tax • Withdrawal of zero rating from petroleum crude oil. • Enhancement in sales tax on RLNG from 12 percent to 17 percent. • Taxation of sugar on the retail price. • Excise duty on mobile phone calls above 5 minutes, at 75 paisas per call. • Installation of point-of-sale equipment with link to the FBR system. The target is 500,000 retail sales outlets. 97