FBR

Pakistan’s FBR Invites Trade Bodies to Submit Tax Proposals for Fiscal Year 2024-25

 

Pakistan’s FBR Invites Trade Bodies to Submit Tax Proposals for Fiscal Year 2024-25

 

 

February 22, 2024, Islamabad – In a notable move towards enhancing transparency and collaboration in its budget formulation, the Federal Board of Revenue (FBR) of Pakistan has extended an invitation to trade bodies for submitting tax proposals for the fiscal year 2024-25.

An official statement released on Thursday revealed that the FBR has approached all chambers of commerce and industries, along with various associations, urging their active involvement in the development of the nation’s tax policies. This initiative encompasses key areas of the tax system including income tax, sales tax, federal excise duty, and sales tax on services in the Islamabad Capital Territory (ICT).

Aiming to build a cooperative relationship between the government and business entities, the FBR’s approach seeks to ensure that the upcoming fiscal year’s budget aligns closely with the collective objectives and expectations of the business community.

Trade organizations are encouraged to focus their proposals on crucial legislative amendments pertaining to the Income Tax Ordinance, 2001; Sales Tax Act, 1990; Federal Excise Act, 2005; and ICT (Tax on Services) Ordinance, 2001. Key considerations for these proposals include addressing tax evasion and leakages, expanding the tax base, enhancing procedures, resolving inconsistencies and anomalies, eliminating outdated elements, and simplifying legal and regulatory frameworks for taxpayer convenience.

The FBR has stressed the importance of clear, feasible, and actionable proposals, with an emphasis on considering the impact on all stakeholders, particularly those who might be negatively affected by new tax measures.

The deadline set for submission of these proposals is March 11, 2024, providing sufficient time for thorough examination and incorporation of viable suggestions into the budgetary process.

This initiative marks a significant step towards participative and consultative tax policy-making in Pakistan. By engaging the private sector in the discussion, the FBR demonstrates its commitment to fostering a tax environment that is conducive to economic growth and development, and recognizes the critical role of businesses in shaping effective tax policies. The collaboration between government and trade bodies in this endeavor underscores the importance of joint efforts in establishing robust and equitable taxation systems.