Islamabad, February 22, 2024 – The Federal Board of Revenue (FBR) has taken a proactive step towards promoting transparency and inclusivity in the upcoming budget formulation process by inviting trade bodies to submit tax proposals for the fiscal year 2024-25.
In an official communication issued on Thursday, the revenue board reached out to all chambers of commerce and industries, as well as associations, encouraging them to actively participate in shaping the country’s tax policies.
The FBR’s call for tax proposals spans various facets of the tax system, encompassing income tax, sales tax, federal excise duty, and sales tax on services provided in the Islamabad Capital Territory (ICT). This move aims to foster collaboration between the government and business stakeholders, ensuring that the budget for the next fiscal year is reflective of the collective needs and aspirations of the business community.
The revenue board has outlined specific parameters for the proposals, urging trade bodies to focus on amendments to key legislations such as the Income Tax Ordinance, 2001; Sales Tax Act, 1990; Federal Excise Act, 2005; and ICT (Tax on Services) Ordinance, 2001. The proposals are expected to address issues related to tax avoidance and leakages, the broadening of the tax base, procedural enhancements, removal of difficulties and anomalies, the elimination of outdated provisions, and the simplification of laws and rules to facilitate taxpayers.
Furthermore, the FBR has emphasized that the proposals should be clear, meaningful, and implementable through subsequent amendments to the law. The importance of considering all stakeholders, especially trade groups that may be adversely affected by the proposed measures, has been highlighted to ensure a balanced and fair approach to tax policy changes.
Trade bodies have been given a deadline of March 11, 2024, to submit their budget proposals. This timeline allows for a comprehensive review of the suggestions and facilitates the integration of feasible recommendations into the budget-making process.
The decision to involve trade bodies in the formulation of tax policies reflects a commitment to a participatory and consultative approach, acknowledging the valuable insights and expertise that businesses can contribute. By seeking input from the private sector, the FBR aims to create a more responsive and business-friendly tax environment that supports economic growth and development.
As Pakistan prepares for the fiscal year 2024-25 budget, this collaborative effort between the government and trade bodies sets a positive precedent for inclusive policy-making, reinforcing the idea that effective taxation policies are best crafted through joint endeavors between the public and private sectors.
