The Federal Board of Revenue (FBR) is currently seeking input from stakeholders and policy makers for the upcoming Federal Budget 2023-24. The FBR has already implemented the Finance Supplementary Bill, which received approval from the National Assembly. In addition, the FBR is seeking proposals for the Federal Excise Duty and Sales Tax Act 1990, Sales Tax Rules 2006, Federal excise Rules 2005, ICT (Sales Tax Ordinance 2001), and Customs Act, 1969.
The proposed budget changes should be submitted to the FBR in a prescribed format by March 1, 2023, via email and hard copies for evaluation and analysis. However, some critics argue that the Finance Bill only serves to increase the tax burden on the common man, resulting in higher inflation in the economy.
The upcoming Federal Budget 2023-24 aims to broaden the tax base for wider revenue generation, phase out tax concessions and exemptions, tax real income on a progressive basis, facilitate taxpayers for ease of doing business, promote equity in taxation by taxing the affluent classes of society, and remove tax anomalies and distortions.
It is essential for the FBR to implement more reliable means of recovering taxes and reduce the cost of recoveries. The end result of incorporating the cost of recoveries and dead weight of the FBR officials is not promising. It is alarming to note that 85% of tax revenue collection is made via indirect taxes, which highlights the need for the FBR to explore alternative revenue sources.
In conclusion, the FBR seeks proposals from stakeholders and policy makers for the upcoming Federal Budget 2023-24. The proposed budget aims to bring about various changes to broaden the tax base and improve the efficiency of tax collection. The FBR needs to implement more reliable means of tax recovery and explore alternative revenue sources to reduce the reliance on indirect taxes.