Tax Laws Bill: proposals & challenges

Pakistan faces numerous challenges in its tax system and revenue generation. These challenges include a narrow tax base, a complex tax structure, an undocumented economy, weak enforcement, political instability, and inconsistent policies. Each government attempts to address these issues according to its own priorities, but the focus remains primarily on increasing taxes from the existing taxpayer base. To address these challenges, including broadening the tax base, the finance minister introduced the Tax Laws (Amendment) Bill, 2024 in the National Assembly. However, again it appears there was little or no consultation with trade bodies, professionals, or taxpayers regarding the proposed amendments before their presentation to the National Assembly.