For the first time a Tax Policy Conference would be held in FBR to draft budget proposals for 2017-18. The idea of Tax Policy Conference is a new concept in the FBR during budget preparation exercise. Sources said that the electronic-commerce is a new feature of the global economy. The e-commerce covers a wide range of areas including business activities taking place through internet, online shopping, online trade and other electronic transactions through internet etc. A successful tax policy for e-commerce must ensure that businessmen can see the link among their business, its profits or turnover and the corresponding income or consumption taxes. Tax laws or regulations not understood by the business community or individual taxpayers must be avoided.
According to the FBR''s instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs), the budget exercise 2017-2018 has been initiated and the process of formulation of budget proposals has to be completed in the context of current tax/economic practices in vogue. Board vide letter C No 4(72)IT-Budget/2015-159602-R, dated 27-12-2016, invited budget proposals from all the field formations. However, in view of the critical importance of the task it has been decided to hold a Tax Policy Conference in FBR on 16th March, 2017.
The FBR is directed to request that concerned chief commissioner or a focal person/persons nominated by her/him fully conversant with the budget proposals prepared by the respective RTO/LTU may kindly participate in the Tax Policy Conference in respect of budget proposals for 2017-18 scheduled to be held on Thursday, 16th March, 2017 at FBR (HQ) Islamabad. The special assistant to the prime minister on revenue will chair the meeting.
In order to benefit from the collective wisdom of all participants, it is requested that each chief commissioner/focal person makes a concise presentation on the main budgetary proposals put forth by the respective RTO/LTU so that the same may be reviewed and critically evaluated.
The suggestions/proposals should be aimed towards ameliorating irritants and rejuvenating economic growth vis-à-vis state revenues. Among others, the following areas can be identified as having revenue potential for optimum realisation of taxes: broadening of tax base; measures for improvement in the tax to GDP ratio; rationalisation/analysis of tax exemptions; and withholding taxes and their application for economic development in the country and taxation of e-commerce.
Copyright Business Recorder, 2017