Stakeholders want tax returns date extended

Islamabad witnessed a surge in tax return filings, reaching 5.181 million by September 29, according to the Federal Board of Revenue (FBR). This marks a substantial increase of 45.8% from the previous tax year, with non-salaried individuals filing returns at a rate of 3.389 million, a 56.9% rise from the previous year, and salaried individuals filing returns at 1.740 million, a 28.9% increase.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Islamabad Chamber of Commerce and Industry (ICCI), and professionals have called for an extension of the tax return deadline, citing delays in issuing return forms and heavy online traffic as major obstacles. The last date for filing company returns is December 31.

However, penalties for late filing have been substantially increased under the Finance Act 2026-27, with the penalty for companies rising fivefold to Rs100,000 from Rs20,000, associations of persons to Rs50,000 from Rs10,000, and individuals to Rs50,000 from Rs1,000. The Karachi Tax Bar Association (KTBA) has submitted a five-page letter to the Member Inland Revenue (operations), highlighting issues such as delays in the issuance of draft notifications, technical glitches in the IRIS portal, disproportionate disclosure requirements, and persistent downtime and instability of the IRIS portal, all of which hinder the smooth filing of tax returns.