The Federal Board of Revenue (FBR) has invited the business community to submit tax policy proposals for the upcoming federal budget, with a particular focus on increasing the overall tax contribution from higher-income segments.

In a communication issued to trade bodies and industry groups, the FBR stated that it is initiating the budget preparation process earlier than previous years in order to improve planning, reduce procedural burdens, and incorporate wider stakeholder input into the formulation of the Finance Bill 2026.

The tax authority said that feedback from the private sector is being sought across several policy domains, including expansion of the tax base, streamlining of tax laws, rationalisation of exemptions and concessions, and improvements to compliance frameworks.

One key priority identified is the promotion of progressive taxation, with measures aimed at increasing the tax incidence on wealthier individuals and entities. The FBR also called for input on strategies to widen participation in the GST value chain, reduce arbitrage and distortions, and improve ease of doing business through simplification and removal of redundancies.

The tax authority emphasised that the areas listed are indicative rather than exhaustive, and encouraged stakeholders to submit actionable proposals that involve additions, deletions, or amendments to existing tax laws. Contributions that support economic efficiency, transparency, and administrative simplification were specifically welcomed.

The move comes as the government pursues fiscal reforms and seeks to improve revenue mobilisation without overburdening already compliant sectors of the economy.