ACCA Proposes Simplification of Tax Laws for Pakistan's Budget 2025-26
The proposal includes a range of measures to simplify tax laws, enhance certainty and predictability, and promote openness and transparency, with a focus on supporting a fiscally sustainable and investment-friendly environment in Pakistan.
ACCA Pakistan has released a comprehensive Budget Proposal for the fiscal year 2025-26, focusing on strengthening Pakistan's taxation system and promoting sustainable economic growth through simplification, certainty, and fairness.
The proposal, developed over a decade of engagement with Pakistan's fiscal reform process, includes key recommendations such as the establishment of an independent Tax Law Simplification Commission, introduction of a 3-5 year Tax Policy Roadmap, and development of a Taxpayer Engagement & Transparency Portal. These measures aim to enhance openness, transparency, and predictability in the taxation system.
ACCA Pakistan's proposal also emphasizes the need for harmonization of tax rates for salaried and non-salaried individuals, incentivization of IT and AI-based research and development, green economy investment, and documented trade. Additionally, it suggests digital enablement through expansion of mandatory e-filing and integration of Point of Sale (POS) systems, as well as Dispute Resolution Reform through reinstatement of judicial neutrality and creation of an Independent Tax Oversight Body.
The proposal is grounded in international best practices and local realities, with a focus on simplicity, certainty, efficiency, and fairness. ACCA is willing to work alongside public institutions, businesses, and civil society to support a fiscally sustainable and investment-friendly environment.
By implementing these proposals, Pakistan can modernize its tax system, promote sustainable economic growth, and create a more investment-friendly environment, ultimately benefiting the country's economy and its citizens.