FBR Seeks Stakeholder Proposals for Pakistan’s 2025-26 Budget
The Federal Board of Revenue (FBR) has started requesting tax proposals from stakeholders to provide input into Budget 2025-26. The FBR is looking at improving the formulation process of its budget, which will reduce procedure burdens and will make the taxation system more effective.
The deadline for submission of proposals is January 31, 2025, and the FBR welcomes all stakeholders to submit their ideas for the betterment of tax policies and business procedures.
Key Areas for Tax Proposals
The FBR has specified several policy areas for which they are seeking proposals, including:
Income Tax
Sales Tax
Federal Excise Duty
This calls for stakeholders to focus on expanding the tax base; that is, to propose measures to bring in more people and entities into the tax net. The proposals should consider bringing the whole value chain of businesses into the GST net. This will add to the collection of taxes at large.
Proposals Aims
The FBR is requesting suggestions that help to achieve:
Encourage Progressive Taxation: Proposals should aim at higher taxes for the better. off sections of society
Elimination of Tax Exemptions: Suggestions for elimination. of unwanted tax exemptions and concessions are made welcome
Reforms in Taxation: Proposals should aim to make the tax process less cumbersome and more efficient by elimination, of redundancy and strengthening tax laws
Tax Distortions and Arbitrage: The FBR seeks to eliminate distortions and arbitrage possibilities in tax design.
Tariff-Related Proposals to the Commerce Ministry
The Commerce Ministry has sought proposals related to tariffs for the next budget aside from the FBR. All tariff-related proposals are to reach the ministry office by February 15, 2025.
Stakeholders will be able to submit their proposals for taxes up to the end of January 2025. The FBR has promoted clear, workable suggestions which, can be either added, modified or removed from current tax laws that will improve the system.
In this regard, the FBR is going to engage with the stakeholders and garner input from every sector in making a more effective and equitable system of taxation in the fiscal year 2025-26.
