KTBA urges FBR to delay SRO 55(I)/2025 by two months, highlighting compliance challenges due to system unavailability and risks of financial penalties.
The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to delay the implementation of SRO 55(I)/2025 by two months to allow taxpayers sufficient time to comply with the new sales tax return filing requirements.
Concerns Over Implementation In a letter addressed to Dr. Najeeb Ahmad, Member (Inland Revenue – Policy) of FBR, the KTBA emphasized that the changes introduced under SRO 55(I)/2025 have not yet been incorporated into the sales tax return system for January 2025. This absence has led to confusion among taxpayers who are struggling to meet the updated reporting obligations before the deadline.
Key Amendments in SRO 55 KTBA President Ali A Rahim noted that SRO 55(I)/2025, issued on January 24, 2025, brought significant amendments to the Sales Tax Rules, 2006. The modifications include the mandatory submission of Annex “J” for all registered manufacturers and Annex “H-I” for commercial importers, distributors, and wholesalers supplying goods. These new requirements were set to take effect immediately, impacting sales tax return filings for January 2025.
Challenges Faced by Taxpayers The KTBA has expressed concerns over the non-availability of the newly introduced annexures in the FBR’s electronic filing system. With the deadline for filing sales tax returns fast approaching, taxpayers face challenges in ensuring compliance, increasing the risk of non-compliance and financial penalties.
Proposal for Extension To mitigate these challenges, the KTBA has proposed deferring the implementation of SRO 55(I)/2025 for at least two tax periods, effectively extending the compliance timeline until March 2025. According to the association, this postponement would enable businesses and taxpayers to familiarize themselves with the revised reporting framework and make necessary adjustments.
Call for Fair Compliance Measures The KTBA has reiterated that tax compliance should not come at the expense of unnecessary difficulties for taxpayers. By granting an extension, the FBR can ensure a smoother transition to the new requirements, prevent last-minute filing issues, and reduce the compliance burden on businesses. The association hopes that the FBR will consider its request favorably, facilitating a fair and transparent tax reporting system.
