Islamabad, July 22, 2023 – In a significant move towards tax reform, Pakistan has unveiled draft changes to inland tax laws aimed at harmonization and simplification.
The proposed amendments are part of the Federal Board of Revenue’s (FBR) ongoing efforts to streamline and standardize tax statutes, including the Income Tax Ordinance, 2001; Sales Tax Act, 1990; Federal Excise Act, 2005; and Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
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The primary objective of these proposed changes is to create a more straightforward and cohesive tax system that benefits both tax collectors and taxpayers. By ensuring uniformity in procedures and processes across these tax statutes, the FBR aims to enhance ease of implementation and compliance, ultimately fostering a more efficient tax ecosystem.
To ensure transparency and inclusivity, the FBR has made the proposed drafts of amendments available for public review. The general public and other stakeholders are encouraged to offer their valuable feedback and comments on the proposed changes. Interested parties are requested to provide their input no later than December 31, 2023.
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The FBR is keen on engaging in further deliberations with stakeholders after the feedback submission period ends. The valuable insights and suggestions received from various entities will be taken into account during the preparation of the Finance Bill 2024.
The importance of constructive feedback from all segments of society has been emphasized by the FBR, as they believe that a collaborative approach to tax reform can lead to a more balanced and equitable tax structure.
Taxpayers, businesses, and other concerned individuals are urged to participate actively in this public consultation process. This presents an opportunity for citizens to have a say in shaping the country’s tax laws and contribute to the creation of a more efficient and fair tax regime.
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The FBR has set a clear timeline for the feedback submission and is committed to ensuring transparency throughout the process. Those interested in providing feedback on the proposed draft changes should do so before the stipulated deadline on December 31, 2023.
As the FBR works towards simplifying and harmonizing the inland tax laws, the initiative holds the potential to significantly impact the taxation landscape in Pakistan. Stakeholders are encouraged to participate actively, seizing the opportunity to be a part of this transformative tax reform.
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This bold step towards tax harmonization and simplification reflects Pakistan’s commitment to creating a more efficient and equitable tax system that benefits all stakeholders involved. With the public consultation process in motion, the country is moving closer to a tax regime that is both fair and conducive to economic growth.
