ISLAMABAD: The budget preparation exercise for the FY 2024-25 will be started from the first week of May 2024 at the Federal Board of Revenue (FBR).

It is learnt that the FBR’s new Member Inland Revenue (Policy) has yet not joined FBR Headquarters on Monday. Till the joining of the new IR (Policy) Member, the exercise to review tax policy proposals of income tax, sales tax, withholding tax and federal excise duty (FED) cannot be started.

The customs side has also received budget proposals on protection of domestic industry, tariff rationalisation and industrial promotion.

Major shuffle in FBR ahead of budget preparation exercise

According to the sources, the FBR has received proposals from almost all stakeholders including chambers, trade bodies and business associations. After the recent reshuffling of key FBR Members, it is expected that the review of the budget proposals will start next month.

When contacted, a relevant official said the exercise for the preparation of taxation proposals was not delayed. Every year, the exercise was started during the first week of May. The meetings between the budget makers and the stakeholders will start next month.

The revenue collection target of the FBR for the year 2024-25 is likely to be fixed at Rs10.952 trillion, the sources added.

Prime Minister Shehbaz Sharif had constituted an 11-member ministerial committee headed by Finance Minister Muhammad Aurangzeb to deliberate upon and firm up proposals for budget 2024-25.

The committee had directed the FBR to draft measures to significantly enhance revenue mobilisation with equitable taxation across sectors of the economy, aiming horizontal expansion (broadening of tax base) as against vertical expansion (burdening existing taxpayers).

Copyright Business Recorder, 2024