In a move that could make tax season far less painful for millions of Pakistanis, Finance Minister Muhammad Aurangzeb has unveiled a drastically simplified tax form for salaried employees—slashing the number of required fields from a staggering 800 to just 40.
The announcement came during a financial management conference co-hosted by the Institute of Chartered Accountants of Pakistan (ICAP) and the Chartered Institute of Public Finance and Accountancy (CIPFA), where Aurangzeb emphasized a shift from endless policy discussions to concrete action.
A 40-Day Window for Feedback
The Federal Board of Revenue (FBR) has already published the new form on its website, opening a 40-day consultation period for public input. The government estimates that around 80% of salaried taxpayers stand to benefit from the overhaul.
“This is about making the tax system more people-friendly,” Aurangzeb said, calling on professionals, businesses, and individuals to weigh in before the changes are finalized.
Policy Overhaul at the Top
The announcement also signals a broader shake-up in how tax policy is managed. Aurangzeb confirmed that responsibility for tax policy-making has been moved from the FBR to the Ministry of Finance—a move aimed at ensuring better coordination and long-term fiscal planning.
The minister criticized the country’s historic reliance on unpredictable tax measures to plug revenue gaps, arguing that these “ad hoc” decisions have repeatedly hurt industries and economic stability.
Why It Matters
Pakistan’s tax system has long been criticized for its complexity, contributing to low compliance and widespread frustration among taxpayers. By dramatically simplifying the process for salaried workers, the government hopes to improve voluntary compliance and rebuild trust between citizens and tax authorities—an essential step as the country works to stabilize its struggling economy.
