SAPM on Revenue, Dr. Waqar Masood Khan held the first budget preparation meeting at FBR to give policy guidelines to the budget makers of the FBR for FY22. It is expected that no new tax would be imposed in the next federal budget. The withdrawal of sales tax exemptions, rationalization of customs tariffs, regulatory duties and additional customs duties, effective enforcement/administrative measures and reduction in the number of withholding taxes would be some of the policy measures for the budget. Changes are also expected in the federal excise regime to increase the FED on various items. The FBR will also review the sectors enjoying reduced rates of sales tax and propose imposition of standard rate of 17% sales tax on these industries/sectors. There is a possibility of providing tax relief in different slabs for salaried class having monthly salary up to PKR 400,000 to PKR 500,000 per month.
2/4/2021