The Federal Board of Revenue (FBR) has begun consultations with key stakeholders to finalize proposals for the federal budget 2025-26, focusing on phasing out tax exemptions, increasing revenue generation and simplifying 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, FBR has sought suggestions for reforms in income tax, sales tax and customs. , Express News reported.
These proposals, due on January 31, 2025, will shape the next finance bill.
The FBR’s priorities include:
- Phase out of tax exemptions: A gradual elimination of tax exemptions in all laws to reduce revenue leakage.
- Expanding the tax net: Strategies to bring new taxpayers into the system while addressing gaps in compliance.
- Support for the national industry: Proposals to protect local manufacturers through tariff adjustments and reductions in duties on raw materials.
- Fairness of tax policy: Measures to guarantee progressive taxation and reduce inequalities in tax treatment between sectors.
Additionally, FBR has sought recommendations to improve ease of doing business, address tax anomalies and improve transparency. Interested parties have been instructed to submit proposals in Word or Excel formats, including estimates of potential revenue impacts and detailed rationale for each suggestion.
“To improve tax-to-GDP ratio, we need a pragmatic approach with workable recommendations,” an FBR official said. “Stakeholder input will be critical to drafting a balanced and inclusive budget.”
FBR also urged field formations and business communities to identify measures to simplify compliance, promote equity in taxation and remove tax exemptions that hamper economic efficiency. The department emphasized the importance of meeting the deadline to ensure comprehensive review and integration of proposals.
The initiative reflects the government’s commitment to sustainable economic policies that prioritize growth and fiscal responsibility. The final draft budget will include these consultations, with the aim of increasing revenues, fostering business-friendly environments and increasing confidence among taxpayers.
Pakistan will meet IMF commitments, but excessive taxes unsustainable: PM
Prime Minister Shehbaz Sharif has stated that Pakistan will honor its commitments to the International Monetary Fund (IMF), but stressed that excessive taxes cannot sustain the country’s economy.
Speaking at the Pakistan Stock Exchange in Karachi on Wednesday, the prime minister reiterated plans for self-reliance.
Prime Minister Shehbaz stressed that while agreements with the IMF are currently necessary, Pakistan will separate from the institution “when the right time comes.”
Highlighting the importance of Karachi, he highlighted its resurgence as a financial and export hub and attributed the city’s improved prospects to the collective efforts of the government.
“Karachi’s lights had dimmed in the past, but today it shines once again,” Prime Minister Shehbaz said, adding that the city remains the center of Pakistan’s trade and finance. He stressed the importance of harnessing the momentum of the stock market for economic growth.
The prime minister expressed optimism about future initiatives, including the ‘Uraan Pakistan’ program aimed at boosting the country’s economy. He described recent successes as a result of teamwork, but stressed the need to continue growth-focused reforms.
Earlier, Prime Minister Shehbaz was received at Pakistan Air Force Base in Faisal 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 will also visit KPT and Aga Khan University later in the day and hold meetings with business leaders.
