**FBR Seeks Detailed Plans to Eliminate Tax Exemptions in Federal Budget FY 25-26**
The Federal Board of Revenue (FBR) is gearing up for the upcoming 2025–26 federal budget by calling on key stakeholders to propose reforms that aim to overhaul the tax landscape in Pakistan. With a focus on axing tax exemptions, boosting revenue generation, and simplifying tax laws, the FBR is seeking input from various business associations and chambers to shape the Finance Bill that lies ahead.
Proposals Due by 31 January 2025
In a bid to streamline the tax system and curb revenue leakage, the FBR has set a deadline of 31 January 2025 for stakeholders to submit their suggestions for revamping income tax, sales tax, and customs regulations. This collaborative effort with business entities like the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the American Business Council underscores the importance of a comprehensive review to craft a balanced and inclusive budget.
Key Priorities and Focus Areas
The FBR’s key focus areas include phasing out tax exemptions gradually to bolster revenue collection, expanding the taxpayer base to increase compliance, and safeguarding local industries by revising tariffs on raw materials. Furthermore, the FBR is keen on ensuring tax policy equity to promote fair and progressive taxation across all sectors.
Stakeholders’ Role and Impact on Budget Draft
Stakeholders have been urged to submit proposals in Word or Excel formats, complete with revenue impact estimates and detailed justifications. These suggestions will play a pivotal role in shaping a budget that not only aligns with the government’s economic objectives but also fosters an environment conducive to business growth and taxpayer confidence.
**Personal Story: A Taxing Dilemma**
Imagine being a small business owner navigating the complexities of tax laws, trying to make ends meet while ensuring compliance with ever-changing regulations. The FBR’s call for proposals represents a ray of hope for individuals like you, as your input could directly influence the upcoming budget, potentially easing your tax burden and paving the way for a more sustainable economic future.
As we await the unveiling of the 2025–26 federal budget, the collaborative efforts between stakeholders and the FBR underscore a shared commitment to fostering economic growth, enhancing transparency, and promoting fairness in taxation. By prioritizing stakeholder input and embracing actionable recommendations, Pakistan’s tax landscape stands poised for a transformative overhaul that benefits businesses, individuals, and the economy at large.
