FBR Seeks Budget Proposals for FY24 with Focus on Controlling Tax Leakages

The Federal Board of Revenue (FBR) has decided to amend the Sales Tax Act 1990 and Federal Excise Act 2005 through Finance Bill 2023 to control tax avoidance/ leakages by the business community. On Wednesday, the FBR issued policy guidelines for the heads of the field formations for the formulation of the budget proposals for the next fiscal year. The FBR has invited the budget proposals for the upcoming budget for FY2023-24 relating to Sales Tax and Federal Excise Duty. The proposals, if any, may encompass the following broad parameters/ areas. The proposals may suggest amendments to Sales Tax Act 1990, Federal Excise Act 2005, Sales Tax Rules 2006, Federal Excise Rules 2005, and, ICT (Sales Tax on Services) Ordinance 2001. The proposals should focus to cope with any tax avoidance/ leakages, broadening of the tax base, removal of any procedural lapses, removal of difficulties and anomalies, abolishing any outdated/obsolete provisions, simplification of the laws and rules, and taxpayer facilitation. The proposals should be clear, meaningful, and implementable through further amendments to the laws having regard to all stakeholders, including the trade groups; which may adversely be affected by the proposed measures. FBR has requested to come up with budget proposals by March 1, 2023.