The Federal Board of Revenue (FBR) has extended an invitation to stakeholders, including businesses, experts, and the general public, to contribute their insights and proposals for income tax improvements in preparation for the budget of 2022/2023.
The move is part of the FBR’s commitment to incorporating diverse perspectives and fostering a more effective and equitable tax policy.
In a statement released on Friday, the FBR disclosed its active engagement in formulating proposals for the upcoming Finance Bill 2022. Recognizing the significance of collective wisdom in enhancing tax policy, the revenue authority encouraged stakeholders to actively participate by submitting their suggestions before the deadline.
The stakeholders have been specifically directed to focus their input on various crucial areas, emphasizing the broader goals of fiscal policy development. These key areas include:
1. Broadening of Tax Base: The FBR seeks proposals to encourage wider participation in revenue generation efforts, aiming to bring more entities into the tax net responsibly.
2. Progressive Taxation of Real Income: The FBR is keen on exploring proposals that promote a progressive taxation system, aligning the tax burden with the actual income of taxpayers.
3. Phasing Out Tax Concessions and Exemptions: Stakeholders are urged to provide recommendations on gradually eliminating tax concessions and exemptions, ensuring a more uniform and fair tax landscape.
4. Removal of Tax Distortions and Anomalies: Proposals addressing any distortions or anomalies in the existing tax structure are welcomed, with the aim of creating a more transparent and efficient tax regime.
5. Facilitation of Taxpayers and Ease of Doing Business: Input on measures to enhance taxpayer facilitation and simplify business processes is encouraged, promoting a conducive environment for economic activities.
6. Promoting Equity in Taxation: The FBR is interested in measures that ensure a fair distribution of the tax burden, with a focus on introducing policies where the incidence of tax is higher on more affluent segments of society.
Stakeholders have been given until February 25, 2022, to submit their proposals, with the FBR also allowing the submission of proposals through email in MS Word/Excel format for added convenience.
This initiative reflects the FBR’s commitment to inclusivity and transparency in the policy-making process. By seeking input from a diverse range of stakeholders, the revenue authority aims to create a more responsive and effective tax policy that aligns with the needs and expectations of the broader community. The call for proposals is a step towards collaborative and informed fiscal governance, emphasizing the importance of public participation in shaping the country’s economic policies.
