Pakistan Budget 2016-2017
KARACHI: The Federal Board of Revenue (FBR) has started budget exercises and is considering to withdraw various exemptions allowed in Income Tax Ordinance, 2001 in the budget 2016-2017. The sources said that the proposals for income tax would include an investor friendly environment, which can general employment. The sources said that withdrawing exemptions and concession would create equality in the system. Currently Part I of the Second schedule of Income Tax Ordinance 2001 consists of various exemptions. These exemptions have been granted on the basis of specific entity, nature of income, geographical source of income and other related function. Experts in the past already suggested revisiting allowed exemptions that should be in line with the government economic policy, four cannons of taxation and primarily which helps in generation of business activity, employment and well-being of the society. Having regards to the above following aspect to be taken into consideration while deciding to withdraw exemption or to provide any further exemption. In order to promote to social welfare of the society, it was proposed. Social sector may be considered for exemption / reduction in tax rates subject to adequate safeguards to built-in against any misuse. In line with Economic policy area, geographical area to be identified for providing of exemption / concession for new investment. Potential growth lies in developing service sector therefore investment in high tax service sector may be considered for exemption / concession. Low education rate is a hurdle in developing of an economy therefore the investment in basic level education sector and high end qualification by the Institution set up not for profit purposes may be given preferential treatment.
FBR seeks proposals for budget 2016-17
ISLAMABAD – The Federal Board of Revenue (FBR) has sought the budget proposals for the upcoming financial year (FY) 2016-2017 from its field officers as well as from other stakeholders, including the business community. The proposals, regarding the General Sales Tax and Federal Excise Duty, have been sought through two letters, FBR wrote to its field officers and businessmen The department has set March 2 as a deadline for the submission of these proposals. It has also asked that the proposals should be pro-revenue, and focus on broadening the tax base, and that amendments might be suggested with a view to achieve simplification, remove difficulties and anomalies and to abolish any outdated provisions. “FBR would especially welcome proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes, if any, facilitating genuine taxpayers and making the procedure transparent,” the FBR stated in the letters. It added that the proposals should be put forward, keeping in view the consequences of these proposals for other related trade groups.