ISLAMABAD: The Federal Board of Revenue (FBR) has opened the door for proposals to amend laws related to sales tax and Federal Excise Duty (FED) as part of the upcoming budget for the fiscal year 2023-2024.
In an official announcement on Wednesday, the FBR has invited suggestions from the business community and the offices of Inland Revenue to be submitted by March 01, 2023. The proposed amendments are intended to be incorporated into the Finance Bill, 2023.
The revenue body specifically called for proposals to amend key tax laws, including the Sales Tax Act, 1990; Federal Excise Act, 2005; Sales Tax Rules, 2006; Federal Excise Rules, 2005; and ICT (Sales Tax on Services) Ordinance, 2001. The FBR emphasized the importance of addressing issues related to tax avoidance, broadening the tax base, rectifying procedural lapses, removing difficulties and anomalies, abolishing outdated provisions, simplifying laws and rules, and enhancing overall taxpayers’ facilitation.
The FBR outlined the criteria for submitted proposals, emphasizing that they should be clear, meaningful, and implementable through further amendments to the existing laws. Additionally, the proposals should take into account the interests of all stakeholders, including trade groups that might be adversely affected by the suggested measures.
“The proposals should be clear, meaningful and implementable through further amendments to the laws having regard to all stakeholders, including the trade groups; which may adversely be affected by the proposed measures,” the FBR stated.
Stakeholders, including businesses, tax experts, and trade associations, are encouraged to participate in this process and provide valuable budget proposals for the fiscal year 2023-2024. The FBR has set a deadline of March 01, 2023, for the submission of these proposals.
This initiative aligns with the government’s commitment to fostering transparency, engaging with stakeholders, and continuously refining the tax system to better serve the needs of the economy. By inviting input from various sectors, the FBR aims to ensure that the upcoming amendments are well-informed, considerate of industry dynamics, and contribute to the overall improvement of the tax regime.
As stakeholders prepare to submit their proposals, the FBR anticipates a comprehensive range of suggestions that will contribute to a more robust and effective tax framework. The collaboration between the government and stakeholders in this process underscores the importance of a consultative approach in shaping tax policies that are responsive to the evolving needs of the economy.