The Pakistan Tax Bar Association (PTBA) has formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns for the months of March and April 2025. The request cites widespread technical difficulties and persistent system discrepancies that are reportedly affecting taxpayers nationwide.
In a letter addressed to FBR Chairman Rashid Mahmood Langrial, the tax bar highlighted that despite the government’s ongoing documentation initiatives aimed at enhancing transparency through structured disclosure via various annexures and notifications, many registered taxpayers are struggling significantly to file accurate returns within the statutory deadline.
According to the PTBA, its member bars across the country have reported that the statutory deadline for March and April 2025 sales tax returns has already passed. Yet, they note that only a minimal number of returns have been successfully filed. The association attributes this alarmingly low filing rate directly to unresolved discrepancies within the newly inserted annexures of the FBR’s online filing system.
“Unfortunately, only a meager number of returns have been filed to date and a huge number of sales tax registered persons are still unable to file their sales tax returns for the respective months due to the non-resolution of discrepancies in the newly inserted Annexures,” the letter stated.
The Bar expressed significant concern that many taxpayers risk being declared inactive – a status that can impact their business operations and compliance – through no fault of their own, simply due to their inability to complete the filing process. This situation arises despite their clear willingness to fulfill their tax obligations.
PTBA Proposes Dual Solution
To address these pressing issues, the PTBA has requested two key measures from the FBR:
- Extension of Deadline: The primary request is for an extension of the filing deadline for both March and April 2025 sales tax returns. The proposed extension is until June 30, 2025, or until the complete resolution of the identified system discrepancies in the annexures, whichever comes later.
- Automatic Revisions for Errors: The second crucial request is for permission for taxpayers who have already filed returns with inadvertent errors – stemming from a misunderstanding of the new annexure disclosure requirements – to make automatic revisions through the IRIS portal.
“We are confident that this extension will provide sufficient time to address the current discrepancies in the annexures, enabling taxpayers to fulfill their legal obligations under the Sales Tax Act, 1990, in a proper and compliant manner,” the letter concluded, emphasizing the need for the FBR to facilitate smoother compliance.
The situation underscores the challenges faced during the implementation of digital tax reforms and the critical need for seamless technical functionality to ensure widespread compliance. Taxpayers and tax professionals across Pakistan now await the FBR’s response to this urgent appeal.
