ISLAMABAD: The government has worked out phasing out tax exemptions worth Rs500 billion being offered in the head of sales tax/excise duty, income tax and customs duty over the next three years.
Federal Board of Revenue (FBR) official spokesperson and Member Inland Revenue Shahid Hussain Asad informed that certain exemptions would be done away with in the upcoming budget for 2014-15 whereas others would go in different phases during the next three years. He pointed out that all exemptions could not be withdrawn due to international commitments and obligations which included concessions available under free trade agreements and bilateral agreements and treaties.
Shahid Hussain Asad, however, declared that exemptions on essentials would be retained.
Meanwhile, the FBR clarified that the Member Inland Revenue (Policy) and Official Spokesperson while talking to the Participants of 17th MCMC, did not say that all the Rs500 tax exemptions would be withdrawn in next fiscal year. The board informed that instead he (member IR) said that currently there were exemptions of around Rs500 billion and plan was being devised to phase out these exemptions during the next three years, starting from the next fiscal year i.e 2014-15.
Meanwhile, the FBR has invited budget proposals from general public for Budget 2014-15. Kindly submit proposal relating to Income Tax, Sales Tax, Federal Excise by May 16, 2014 at email@example.com. The FBR also invites budget proposals relating to Customs by May 16, 2014 at firstname.lastname@example.org.