The Federal Board of Revenue (FBR) has initiated the process of formulating tax policies for Budget 2025-26, inviting proposals from stakeholders to enhance tax reforms and streamline procedural operations.
The FBR has set January 31 as the deadline for stakeholders to submit suggestions for the Finance Bill 2025. The proposals aim to broaden the tax base, promote progressive taxation, and reduce procedural redundancies.
In a separate letter, the Ministry of Commerce has also requested tariff-related proposals for the upcoming budget, with a submission deadline of February 15.
The FBR has specified income tax, sales tax, and federal excise duty as key areas for stakeholder input. Proposals should focus on integrating businesses into the general sales tax (GST) regime and reducing tax arbitrage opportunities to enhance economic efficiency. Special emphasis is placed on promoting progressive taxation by imposing higher taxes on affluent segments of society.
Additionally, stakeholders are urged to suggest reforms that simplify tax laws and eliminate procedural anomalies. Proposals should address the removal of distortions, redundancies, and inefficiencies to make the tax system more effective and neutral.
