ISLAMABAD — Finance Minister Muhammad Aurangzeb announced a simplified income tax return form for salaried individuals, reducing the number of fields from 800 to just 40, marking a step toward a more efficient and predictable tax system. The new form, available for public consultation on the Federal Board of Revenue (FBR) website for 40 days, is expected to benefit nearly 80% of salaried taxpayers.
Speaking at the “Building a Resilient Public Financial Management Ecosystem” conference, Aurangzeb emphasized that the government’s focus is now on implementation rather than policy debate. He encouraged stakeholders to provide feedback on the new tax return form.
In addition to this, Aurangzeb revealed that the tax policy-making function has been shifted from the FBR to the Ministry of Finance to improve strategic coherence and fiscal governance. He also highlighted the government’s commitment to stable, predictable taxation policies and cautioned against ad hoc measures to address revenue shortfalls, noting that erratic tax decisions have hindered domestic industry in the past.
The minister further outlined plans for a new industrial policy aimed at attracting long-term investment and rebuilding investor confidence, which he said had been eroded by inconsistent past policies. Aurangzeb also reaffirmed the government’s commitment to accelerating privatization and improving the efficiency of state-owned enterprises (SOEs).
Addressing broader national challenges, Aurangzeb stressed the importance of addressing climate change and population growth, calling them existential threats to Pakistan. He also highlighted the need to align Pakistan’s financial systems with international standards to strengthen institutional accountability and governance.
The conference, organized by the Institute of Chartered Accountants of Pakistan (ICAP) and the Chartered Institute of Public Finance and Accountancy (CIPFA), included presentations from various stakeholders, including Privatisation Minister Muhammad Ali, Federal Minister for Climate Change Musadik Malik, and Ross Smith of the International Public Sector Accounting Standards Board (IPSASB).
