The Federal Board of Revenue (FBR) has extended the deadline for filing monthly sales tax and federal excise returns for February and March 2025, providing relief to businesses affected by ongoing technical issues with its digital filing system.
The new deadline for submitting returns is now April 25, 2025. This applies to both the February and March 2025 tax periods, offering businesses additional time to meet compliance requirements.
Official Notification Issued to Tax Offices
In a formal communication vide C.No. 9 (11) ST-LP&E/Misc/2016/48825-R to Chief Commissioners of Large Taxpayers Offices (LTOs), Medium Taxpayers Office (MTO), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), the FBR clarified the revised timeline. The February 2025 return, originally due on March 18 and later extended to April 13, will now be accepted until April 25. Similarly, the March 2025 return, which was due on April 18, has been given the same extended deadline.
However, the FBR emphasized that this extension is conditional. Taxpayers must ensure the sales tax liability is deposited within the original payment deadlines, or they may not benefit from the deadline relief.
System Glitches Lead to Extension
This decision follows widespread technical difficulties experienced by users of the FBR’s IRIS portal. Persistent glitches have made it difficult for many businesses to access and submit their returns on time.
The Karachi Chamber of Commerce and Industry (KCCI) has taken a firm stance on the matter. In a recent letter addressed to Prime Minister Shehbaz Sharif, KCCI President Muhammad Jawed Bilwani highlighted the adverse impact of the system’s malfunctions. According to the KCCI, thousands of businesses across Pakistan are facing compliance challenges due to system errors.
Temporary Relief for Taxpayers
The FBR’s move to extend the filing deadlines is seen as a temporary relief measure aimed at reducing pressure on taxpayers during a time of technical disruption. While the department works to address the IRIS system issues, the extension is intended to prevent penalties for businesses that are otherwise ready to comply but are held back by technical constraints.
The FBR has not yet announced when the system issues will be fully resolved but assured stakeholders that efforts are underway to improve the digital infrastructure.
