ISLAMABAD: The federal government has initiated the process for the upcoming Fiscal Year 2026-2027 budget, inviting input from the business community by January 30. In a notable change, the Ministry of Finance will now spearhead the formulation of tax policies, shifting responsibilities away from the Federal Board of Revenue (FBR).
The Ministry’s Tax Policy Office has been designated as the primary authority for implementing tax reforms and policy adjustments. The government emphasizes a collaborative approach, engaging all stakeholders to shape the budget priorities. Focus areas include alleviating the tax burden on industries, attracting foreign investment, and enhancing export capabilities.
Strategic initiatives aim to foster manufacturing and industrial development, with particular attention to supporting the IT sector and the digital economy through targeted tax incentives. The government also plans to promote sustainable and affordable energy projects, emphasizing eco-friendly solutions.
Addressing unemployment remains a key objective, with plans to generate employment opportunities for women and youth. Efforts will also be made to simplify the tax system and eliminate existing disparities, responding to ongoing concerns from the business sector.
Businesses are instructed to submit their proposals via email or postal mail, using a specially designed form that requires detailed explanations and background information for each suggestion. Proposals must include projected impacts on revenue, economic indicators, and sector-specific outcomes.
Only proposals supported by concrete data and thorough analysis will be considered for inclusion in the final budget, underscoring a data-driven approach to fiscal planning.
