The income tax budget for 2020-21 will focus on six major areas including phasing out of tax concessions and exemptions and raising the incidence of taxes on affluent classes.
The Federal Board of Revenue (FBR) has asked chambers and federations to submit their income tax proposals for budget (2020-21) by February 7, 2020.
According to the FBR, the board is currently engaged in the formulation of proposals for the Finance Bill 2020. In order to benefit from the collective wisdom of all the stakeholders for the improvement of tax policy, proposals are invited for the upcoming budget of 2020-21.
The input/suggestions in said areas shall be highly appreciated as a genuine contribution towards the framing of broad-based and workable tax policy.
- Broadening of the tax base for wider participation in revenue generation efforts.
- Taxation of real income on a progressive basis.
- Phasing out of tax concessions and exemptions.
- Removal of tax distortions and anomalies.
- Facilitation of taxpayers and ease of doing business.
- Promoting equity in taxation by introducing measures where the incidence of tax is higher on affluent classes are major areas.
The areas identified above are just illustrative and not exhaustive. It is requested that these proposals may be provided by 7th February 2020.