The Lahore Tax Bar Association (LTBA) has urged the government to extend the income tax return filing deadline for Tax Year 2025, highlighting technical glitches on the FBR’s IRIS portal and delays in the notification process. LTBA President Muhammad Asif Rana warned that these issues have left taxpayers unable to file on time, stressing that an extension is vital for fair compliance and revenue collection.
The Federal Board of Revenue (FBR) has introduced last-minute changes to the 2025–26 Income Tax Return and Wealth Statement forms, requiring detailed asset disclosures and new valuation entries. Taxpayers and small businesses have expressed frustration, calling the sudden updates just days before the filing deadline unfair and burdensome.
The Supreme Court heard arguments against the Super Tax under Section 4C, with counsel claiming it was an arbitrary measure to raise Rs215 billion. He argued that alternative fiscal options existed, but the government chose to burden existing taxpayers. The levy was criticized as unconstitutional, unjust, and a tax on expenses rather than income.
The Auditor General of Pakistan’s 2024-25 report reveals that withholding tax collection surged to Rs 2,740.10 billion in FY 2023-24, mainly due to higher tax rates on the salaried class. Withholding taxes now make up 60.47% of total direct taxes, showing heavy reliance on at-source deductions. Experts stress the need to widen the tax base instead of overburdening compliant salary earners.
The FBR has started sending SMS reminders urging taxpayers to file their returns before the deadline. While the step promotes compliance, many already-compliant taxpayers also received the notices. Meanwhile, FBR’s sudden removal and reactivation of the tax recovery option on its portal highlights poor planning and creates unnecessary stress for taxpayers.
The Federal Board of Revenue (FBR) is set to take action against nearly 100,000 influencers and wealthy individuals flaunting their luxury lifestyles on social media. From lavish weddings to luxury cars and designer outfits, non-filers showing extravagant spending will now face strict scrutiny.
FBR Chairman Rashid Mahmood Langrial has confirmed that no mini-budget is under consideration ahead of the IMF mission visit. The government is focusing on stricter tax enforcement and seeking relief for flood-affected populations instead of introducing new taxes.
The government is considering reducing the FBR’s tax target from Rs14.13tr to Rs13.7–13.9tr, while a new flood levy on high-net-worth sectors is being finalised to fund post-flood rehabilitation.
The Karachi Tax Bar Association (KTBA) has highlighted serious flaws in FBR’s IRIS system for Tax Year 2025, including errors in tax credit on donations, surcharge adjustments, withholding under Section 100BA, and tax deducted on electricity bills. The bar has urged FBR to immediately fix the anomalies or issue clarifications.
The Pakistan Virtual Assets Regulatory Authority (PVARA) has become operational, with FBR officials set to join its oversight team. The authority will focus on market surveillance, risk management, and anti-money laundering compliance to strengthen regulation of the virtual assets sector.