Each year, while initiating the exercise on formulation of the budget, Finance Department invites tax and non-tax proposals from the Administrative departments. These proposals, primarily, aim to mobilize resources of the province. One of the important requirements of budget 2016-17 would be to prepare tax proposals aimed at generating more revenues, improving tax collection efficiency, incentivizing tax compliance and discouraging tax evasion so that Government have enough resource envelope to meet our critical development needs.
Finance Department works on tax proposals for the respective financial year in consultation with various departments including major revenue generating departments, i.e. Punjab Revenue Authority, Board of Revenue, and Excise and Taxation Department. As a result of this exercise, a high powered Revenue Mobilization Committee is constituted to review and finalize these proposals.
Thereafter, the recommendations of the said committee are presented to Chief Minister and after approval from the competent authority and provincial cabinet, the said tax proposals are implemented through Finance Bills/Notifications.