In preparation for the upcoming fiscal year’s budget, the Federal Board of Revenue (FBR) has issued a call for sales tax and federal excise duty (FED) proposals.
The FBR’s invitation, announced on Friday, encourages stakeholders to submit their recommendations by March 16, 2022.
Stakeholders, including industry experts, businesses, and tax professionals, are urged to focus their proposals on several key areas outlined by the FBR. The primary parameters include suggested amendments to 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 emphasizes that proposals should address various aspects, including:
1. Tax Avoidance and Leakages: Suggestions to counter tax avoidance and leakages, ensuring a more robust and effective tax collection mechanism.
2. Broadening of Tax Base: Strategies to expand the tax base, ensuring a more comprehensive inclusion of taxable entities.
3. Procedural Lapses: Proposals for the removal of any procedural lapses that may hinder the efficiency of the taxation process.
4. Difficulties and Anomalies: Identification and elimination of difficulties and anomalies within the existing tax framework.
5. Outdated/Obsolete Provisions: Recommendations to abolish any outdated or obsolete provisions that may no longer be relevant.
6. Simplification of Laws and Rules: Suggestions for simplifying tax laws and rules, making them more accessible and understandable for taxpayers.
7. Taxpayer’s Facilitation: Measures to enhance the overall experience for taxpayers, focusing on facilitating compliance and reducing administrative burdens.
The FBR stresses that the proposed amendments should be clear, meaningful, and implementable. Consideration of all stakeholders, including trade groups that may be impacted by the proposed measures, is crucial.
This call for proposals aligns with the government’s commitment to continuous improvement and responsiveness to the evolving economic landscape. By actively seeking input from stakeholders, the FBR aims to adopt a collaborative approach in shaping tax policies that are effective, fair, and conducive to economic growth.
Stakeholders are encouraged to actively participate in this process, contributing valuable insights and recommendations to shape a more robust and responsive fiscal framework for the upcoming financial year.
