The Federal Board of Revenue (FBR) has initiated consultations with key stakeholders to finalize proposals for the Federal Budget 2025-2026, focusing on phasing out tax exemptions, increasing revenue generation and rationalization of tax laws.
In an official communication to business associations such as Federation of Pakistan Chambers of Commerce and Industry (FPCCI), American Business Council, Pakistan Business Council and other chambers, the FBR has sought suggestions for income tax, sales tax, and customs reforms. , reported Express News.
These proposals, expected by January 31, 2025, will shape the next finance bill.
FBR priorities include:
- Gradual elimination of tax exemptions: A gradual removal of tax exemptions in all laws to reduce revenue leakage.
- Widening the tax net: Strategies to attract new taxpayers to the system while closing compliance gaps.
- Supporting national industry: Proposals to protect local manufacturers through tariff adjustments and duty reductions on raw materials.
- Fairness of tax policy: Measures aimed at guaranteeing progressive taxation and reducing inequalities in tax treatment between sectors.
Additionally, the FBR has sought recommendations to improve ease of doing business, address tax anomalies and improve transparency. Stakeholders were invited to submit proposals in Word or Excel format, including estimates of potential revenue impacts and detailed rationales for each suggestion.
“To improve the tax-GDP ratio, we need a pragmatic approach with concrete recommendations,” an FBR official said. “Stakeholder input will be essential to developing a balanced and inclusive budget.”
The FBR also urged the field formations and business communities to identify measures to simplify compliance, promote fairness in taxes and eliminate tax exemptions that hamper economic efficiency. The ministry stressed the importance of meeting the deadline to ensure full review and integration of proposals.
This initiative reflects the government’s commitment to sustainable economic policies that prioritize growth and fiscal responsibility. The final draft budget will include these consultations, aimed at increasing revenue, fostering a business-friendly environment and strengthening taxpayer confidence.
Pakistan will honor IMF commitments, but excessive taxes will not be sustainable: PM
Prime Minister Shehbaz Sharif said Pakistan would honor its commitments to the International Monetary Fund (IMF), but stressed that excessive taxation could not support the country’s economy.
Speaking at the Pakistan Stock Exchange in Karachi on Wednesday, the prime minister reiterated his plans for self-rule.
Prime Minister Shehbaz noted that while agreements with the IMF are currently necessary, Pakistan will part ways with the institution “when the time is right”.
Highlighting the importance of Karachi, he noted its resurgence as a financial and export hub, attributing the collective efforts of the government to the city’s brighter prospects.
“Karachi’s lights had gone out in the past, but today they are shining again,” Prime Minister Shehbaz said, adding that the city remains the center of Pakistan’s trade and finance. He stressed the importance of harnessing stock market dynamics for economic growth.
The Prime Minister expressed optimism about future initiatives, including the ‘Uraan Pakistan’ program aimed at propelling the country’s economy upwards. He described recent successes as the result of teamwork, but stressed the need to continue growth-oriented reforms.
Earlier, Prime Minister Shehbaz was welcomed at Pakistan’s Faisal Air Base by Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah. He was accompanied by Finance Minister Ishaq Dar, Information Minister Attaullah Tarar and other officials.
The Prime Minister is also expected to visit the KPT and the Aga Khan University later today and meet business leaders.