Federal Finance Minister Muhammad Aurangzeb has announced a major overhaul of the tax return system, aimed at making it more user-friendly and transparent.
While presenting the federal budget 2025-26 in the National Assembly, the finance minister revealed that the new system will enable salaried individuals and small business owners to file their tax returns themselves without requiring the assistance of a lawyer.
As per the new system, only seven basic pieces of information would be required, and there would be no need for a lawyer or expert.
Aurangzeb emphasized that digital transformation is a key component of the Federal Board of Revenue's (FBR) improvement plan, which will facilitate taxpayers and expand the tax network. The new system, set to be implemented from July 1, 2025, will simplify the tax filing process and make it more accessible to a wider audience.
The minister said it is not possible to achieve economic goals without reforms in the Federal Board of Revenue (FBR). A significant aspect of the reform is the introduction of a new classification system for income tax, which will eliminate the distinction between filers and non-filers.
"Those who are shouting from the rooftops about a mini budget should see that there is no mini budget or additional tax," Finance Minister Aurangzeb declared.
