Wednesday November 29, 2023

FBR invites budget proposals

By Our Correspondent
January 14, 2021

KARACHI: The Federal Board of Revenue (FBR) has started exercise for budget 2021/22 and invited income tax proposals from tax managers and trade and industry.

The FBR on Wednesday issued letters to tax offices and associations of trade and industries, asking them to send their income tax proposals for the budget 2021/22 by February 15.

The ministry of finance issued a budget call circular on January 8 as the government is intending to present the budget 2021/2022 by the first week of June 2021.

In compliance with the budget call circular the FBR has also initiated budget exercise and initially invited proposals for changes in income tax laws from stakeholders by February 15.

The FBR asked the tax managers and trade and industries that the proposals should focus on broadening the tax base for a wide participation in revenue generation efforts.

The revenue body also asked the stakeholders to focus on taxation on real income on progressive basis and phasing out of tax concessions and exemptions.

The proposals should also focus on removal of tax distortions and anomalies besides facilitation of taxpayers and ease of doing business should be priority. The FBR said it is seeking proposals for promoting equity in taxation by introducing measures where incidence of tax is higher on affluent classes.

The stakeholders have been asked to provide proposals in a prescribed formation that should include relevant sections/clauses or rules where amendment is sought. The proposals related to any section of Income Tax Ordinance, 2001 or any rule to Income Tax Rules 2002 should be presented along with rationale and revenue impact.