ISLAMABAD: The Federal Board of Revenue (FBR) has directed Inland Revenue field formations and business community to submit income tax and sales tax-related budget proposals (2025-26) for bringing the entire value chain of all businesses into the sales tax regime, promoting progressive taxation and withdrawing concessions/exemptions.
The FBR has given a deadline of January 31, 2025 to the field formations as well as the business community to submit their budget proposals for the next fiscal year.
The FBR has not asked the business community to submit budget proposals on tax concessions, reduction in higher tax rates or proposals to allow any new income tax, sales tax/FED exemptions.
According to the FBR’s directive to its field formations as well as business community on Wednesday, the FBR has invited budget proposals for the upcoming budget for Fiscal Year 2025-26 relating to Income Tax, Sales Tax, Federal Excise Duty and ICT (Tax on Services) Ordinance, 2001.
The FBR stated that in order to enhance the budget formulation process and to reduce backend procedural burdens, the Federal Board of Revenue (FBR) plans to commence its budget process earlier this year. As a plan, the FBR has started developing proposals for the Finance Bill, 2025. In pursuit of leveraging the collective expertise and insights of all stakeholders to refine tax policies, the FBR cordially invite proposals for the forthcoming Budget for the Fiscal Year 2025-26.
The suggestions in the following policy areas shall be highly appreciated:
(i) Broadening of tax base for a wider participation in revenue generation efforts.
(ii) Policy suggestions for bringing entire value chain of all businesses in GST regime.
(iii) Promoting progressive taxation by introducing various measures where incidence of tax is higher on affluent classes.
(iv) Phasing out of tax concessions and exemptions under all tax laws.
(v) Facilitation of taxpayers and ease of doing business by removal of redundancy and simplification of tax laws.
(vi) Measures to reduce tax arbitrage opportunities and infuse efficiency in economy by following neutrality principle in taxation.
(vii) Removal of tax distortions, procedural lapses and anomalies.
The areas identified above are just illustrative and not exhaustive. The proposals are expected to be clear, meaningful and implementable through addition, deletion, or further amendments to the tax laws. It is requested that the proposals may be provided by January 31, 2025, FBR added.
Copyright Business Recorder, 2025
Comments
Comments are closed.