The Federal Board of Revenue (FBR) has issued an invitation to business chambers and associations to submit their sales tax and federal excise proposals for the upcoming budget 2020/2021. The primary aim is to eliminate flying invoices and tax fraud while broadening the tax base and increasing revenue.
In a circular released on Thursday, the FBR emphasized that the submitted proposals should prioritize the elimination of tax fraud, fake and flying invoices, plugging existing loopholes, and facilitating genuine taxpayers by making the taxation process more transparent. The board is seeking comprehensive suggestions to overhaul and improve the current system.
The FBR has requested proposals that focus on amendments in several key pieces of legislation, including the Sales Tax Act, 1990; the Federal Excise Act, 2005; the Sales Tax Rules, 2006; the Federal Excise Rules, 2005; and the ICT (Sales Tax on Services) Ordinance, 2001. Stakeholders are encouraged to suggest changes aimed at simplifying procedures, removing difficulties and anomalies, and abolishing outdated or obsolete provisions.
According to the FBR, it is crucial that the proposals consider the broader impact on various trade groups. Any suggested measures should avoid adversely affecting related sectors and should be designed to promote a more efficient and equitable tax system. The FBR is focused on creating an environment that encourages compliance and reduces opportunities for fraud.
“The objective is not only to increase revenue but also to ensure that the tax system is fair and transparent,” an FBR official stated. “We are looking for practical and innovative solutions from our business community to help us achieve these goals.”
The FBR has set a deadline of March 16, 2020, for the submission of proposals. This timeline allows the board sufficient time to review the suggestions and incorporate viable options into the budget planning process. Business chambers and associations are expected to collaborate with their members and industry experts to provide detailed and actionable recommendations.
By inviting these proposals, the FBR aims to engage the business community in a constructive dialogue about improving the tax system. This collaborative approach is intended to build trust between the tax authority and taxpayers, fostering a culture of compliance and mutual benefit.
As Pakistan continues to face economic challenges, the successful implementation of these proposals could play a crucial role in stabilizing the financial landscape and promoting sustainable growth. The FBR’s initiative marks a proactive step towards creating a more robust and fraud-resistant tax infrastructure.
