Substantial tax Offices (LTOs) under the Federal Board of Revenue (FBR) have begun accepting advance tax payments from major firms to satisfy yearly revenue objectives. As stated by the Pakistan Business Council (PBC) and the World Bank (WB) on new reforms, this policy has aroused concerns.
Stakeholder Engagement Plan, the FBR’s report, is part of the World Bank-funded Pakistan Raises Revenue Project (PRRP). It illuminates LTO advance tax collecting. Large corporations have complained about how these offices’ tax officers solicit advance tax payments for the next year.
Economic documentation is important to company interests, and the PBC contributes a large portion of taxes. This project’s actions benefit PBC members, who pay 25% of the nation’s taxes. They agree that the tax structure should be streamlined to focus on company development and revenue.
These issues are seen in the countrywide telecom business. The differences in province sales tax rates need a uniform service sales tax policy. The FBR should also simplify input-output adjustment processes and collaborate with private sector groups and provincial authorities to better understand company supply networks.
The PBC has also raised withholding tax. When businesses function as withholding tax agents, the procedure should be automated and online for FBR and withholding tax agent cross-checking. Process transparency and consistency are crucial, and company policy changes should start with stakeholder discussions.
The paper recommends forming a joint committee of project and PBC members to examine and advise on project planning, implementation, monitoring, and evaluation. The PBC has generally supported and been interested in the initiative, according to the FBR assessment.