Elimination of exemptions/concessions: FBR starts working on budget plan

Federal Board of Revenue (FBR) has started working on the development of budget strategy paper for financial years 2020-21 - 2022-23 with the prime objective to eliminate exemptions/concessions, it has been learnt here. According to sources, the FBR on the directives of finance division (budget wing) has kicked off working on the development budget strategy paper for financial years 2020-21 & 2022-23.

Furthermore, sources said that finance division has sought FBR's assistance to get exemptions/concessions eliminated. For the purpose, the board has been asked to provide information about the tax policy over the medium-term including measure to eliminate exemptions/concessions.

Moreover, the budget strategy paper for financial years 2020-21 & 2022-23 will also be targeting on planned tax administration reforms not only to enhance tax-base but also for improving tax-to-GDP ratio. Sources said that finance division had also stressed upon FBR to identify number and types of new sectors, which remained out of tax ambit and forward comprehensive strategy to bring these sectors into tax net.

Replying to a question, sources said that under the said directives, all Regional Tax Offices, Large Taxpayers Units and Corporate Regional Tax Offices were asked to submit workable suggestions in this regard under present circumstances. They further said that all tax offices had started working on the guidelines given by the board with the prime focus on the elimination of exemptions/concessions besides bringing new sectors into tax net.