Karachi, February 24, 2024 – In a bid to enhance revenue collection and address the issue of undertaxed sectors, the Federal Board of Revenue (FBR) has urged the offices of Inland Revenue (IR) to contribute new and innovative ideas.
Through a recent notification, the FBR has called for proposals related to Inland Taxes, encompassing income tax, sales tax, federal excise, and Islamabad Capital Territory (ICT) sales tax on services for the upcoming budget 2024-25.
The directive explicitly instructs the IR offices to focus on proposing amendments to key legislations, namely the Income Tax Ordinance, 2001; Sales Tax Act, 1990; Federal Excise Act, 2005; and ICT (Tax on Services) Ordinance, 2001. The objective is to identify areas where the tax net can be expanded and revenue from undertaxed sectors can be maximized.
The FBR is keen on receiving proposals that address various aspects of taxation, including measures to counter tax avoidance, plug leakages, broaden the tax base, rectify procedural lapses, eliminate difficulties and anomalies, repeal outdated provisions, and simplify existing laws and rules for the facilitation of taxpayers.
One of the key elements emphasized by the FBR is the need for proposals to be clear, meaningful, and implementable. The tax offices are encouraged to ensure that their suggestions can be translated into practical measures through further amendments to existing laws. Importantly, the FBR has stressed the importance of considering the perspectives of all stakeholders, including trade groups that might be adversely affected by the proposed measures.
The deadline for submission of these proposals is set for March 11, 2024. This timeline provides the IR offices with a window of opportunity to thoroughly analyze the current tax landscape, identify loopholes, and devise strategies to bring untapped areas under the tax net. The FBR aims to create a more equitable and efficient taxation system by harnessing the collective intellect of tax officials and experts.
The call for new ideas aligns with the government’s commitment to fiscal responsibility and sustainable economic growth. By encouraging the taxation authorities to think creatively and proactively address challenges in revenue collection, the FBR seeks to bolster the financial health of the country and ensure that all economic participants contribute their fair share.
As the proposals start pouring in, the FBR will be tasked with evaluating each suggestion meticulously, considering the potential impact on various sectors of the economy. The outcome is anticipated to be a well-informed set of amendments and measures that will not only enhance revenue but also foster a more transparent and accountable tax system in Pakistan.
