The budget preparation exercise has been started in the Federal Board of Revenue (FBR) for 2021-22.
In this connection, Special Assistant to the Prime Minister on Revenue, Dr Waqar Masood Khan chaired the first budget preparation meeting at the FBR Headquarters. Tax policy for the next federal budget was reviewed during the said meeting.
The taxation measures would be drafted in the light of the following broader parameters:
- Withdrawal of sales tax exemptions.
- Imposition of standard rate of 17 percent sales tax on areas subjected to lower sales tax rates or special sales tax regime.
- Abolition of 20 withholding taxes.
- Relief of income tax to salaried class.
- Rationalization of customs tariffs, regulatory duties and Additional Customs Duties (ADCs).
- Raise in federal excise duty (FED) on excisable commodities
- New enforcement and administrative measures.
- Abolition of condition of Taxpayer Profiles which was extended from March 31 to June 30, 2021.
- Change in the date of applicability of withdrawal of exemptions to July 1, 2021.
- Legal changes to eliminate tax fraud, fake and flying invoices, plugging loopholes, and bringing new taxpayers into the tax net.
- Legal changes to remove difficulties and anomalies, and to abolish any outdated/obsolete provisions.
- Removal of tax distortions and anomalies