FY 2020-2021: FBR seeks budget proposals from business community, tax officials

The Federal Board of Revenue (FBR) has asked the business community and the tax officials to submit budget proposals for 2020-2021 with the specific focus of eliminating tax fraud, plugging in loopholes, and facilitating genuine taxpayers.

In this regard, the FBR has sought budget proposals from its members, the chief commissioners/director generals, and the chambers of commerce and industries, here on Thursday.

According to the FBR, the board invites the proposals for the coming budget for FY 2020-2021 relating to sales tax and federal excise, on six broad parameters. First, the proposals should focus on broadening the tax base and increase in revenue collection.

Second, amendments may be suggested in any of following laws/rules etc including the Sales Tax Act, 1990, the Federal Excise Act, 2005, the Sales Tax Rules, 2006, the Federal Excise Rules, 2005, and the ICT (Sales Tax on Services) Ordinance, 2001.

Third, amendments may be suggested with a view to achieve simplification, remove difficulties and anomalies, and to abolish any outdated/obsolete provisions. Fourth, wherever possible a draft proposed amendment/procedure may be enclosed along with revenue impact both in soft and hard form.

Fifth, the FBR would specially welcome proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes if any, facilitating genuine taxpayers, and making the procedures transparent. Sixth, the proposals should be made keeping in view the consequences for the other related trade groups, which might be adversely affected by the proposed measure, the FBR added.