Taxpayers in Pakistan Demand Clarity on Finance Act 2024

Tariq Mahmood Meo, a prominent figure in Pakistan’s tax community, has expressed deep concern over the lack of clarity surrounding the Finance Act 2024. Meo, a former Chairman of the Sales Tax Refunds Committee, revealed that 4 million taxpayers are grappling with the complexities of the new law, resulting in heightened anxiety and a reluctance to file their income tax returns. He criticized the Federal Board of Revenue (FBR) for its experimental approach, arguing that it has hampered efforts to expand the tax net and created a climate of fear among taxpayers. Meo proposed simplifying the tax system by reducing the number and rates of taxes, but acknowledged that bureaucratic resistance hinders progress. He also highlighted the government’s hasty implementation of a business-friendly scheme without adequate public awareness, leading to unintended consequences.