The Federal Board of Revenue (FBR) has reached out to the business community, urging them to propose measures aimed at eliminating tax evasion, counterfeit invoices, and plugging existing loopholes in the tax system.
The FBR, in an official statement on Monday, extended an invitation for proposals on indirect taxes specifically for the upcoming budget in 2019/2020. The primary focus of the proposals is expected to be on the broadening of the tax base and the augmentation of revenue streams.
Businesses are encouraged to suggest amendments to key legislations, including the Sales Tax Act, 1990; Federal Excise Act, 2005; Sales Tax Rules, 2006; Federal Excise Rules, 2005; Sales Tax Special Procedure Rules, 2007; Sales Tax Special Procedure (Withholding) Rules, 2007; Sales Tax Notifications/Circulars/General Orders/Clarification/Rules; and Federal Excise Notifications/Circulars/General Orders/Clarifications/Rules.
The FBR emphasized that proposed amendments should strive for simplification, address difficulties and anomalies, and eliminate outdated or obsolete provisions wherever possible. Additionally, businesses are encouraged to provide draft proposed amendments or procedures, along with an assessment of the potential revenue impact.
Notably, the FBR has instructed that the proposals should take into consideration the potential consequences for other related trade groups that might be adversely affected by the suggested measures. This inclusive approach aims to ensure a balanced and equitable impact on various sectors of the business community.
The deadline for submission of proposals has been set for February 22, 2019. The FBR has specifically highlighted the importance of proposals that focus on facilitating genuine taxpayers and promoting transparency in procedural matters.
This initiative reflects the government’s commitment to collaborative efforts with the business community to strengthen the tax system, curb fraudulent practices, and create a more transparent and conducive environment for economic growth. The FBR’s call for proposals marks a pivotal step towards fostering a mutually beneficial relationship between the government and the business sector in addressing fiscal challenges and promoting responsible business practices.
