LTBA has urged Prime Minister Shehbaz Sharif to extend the tax return deadline to November 30, 2025, pointing to serious technical glitches in FBR’s IRIS system, legal irregularities, and a shortened statutory filing window caused by delayed notifications.
Starting November 1, 2025, cement bags will only be cleared from factories or import stations if they bear tax stamps issued by FBR-authorized licensees, as part of a new initiative to strengthen electronic monitoring and tax compliance in the cement sector.
FTO has censured the FBR and PRAL for poor handling of taxpayer support services and system glitches, directing them to establish a dedicated technical team and revamp the helpline for more efficient issue resolution.
FBR has rejected claims of a system collapse or cyberattack, saying the incident involved a taxpayer’s compromised credentials rather than any vulnerability in its IT infrastructure. The authority assured that its systems remain protected by advanced cybersecurity protocols and regular third-party audits.
Capital Gain Tax collection soared 559% to Rs62 billion in the first quarter of FY2025–26, fueled by a record-breaking rally at the Pakistan Stock Exchange, where the KSE-100 Index surged past 165,000 points amid soaring investor confidence.
FBR held a Tax Awareness Session at Pearl Continental Hotel, Rawalpindi, focusing on income tax return filing for Tax Year 2025. Organized by the Taxpayers’ Services Wing, the event aimed to educate participants on digital tax filing and compliance, reinforcing FBR’s commitment to building a transparent and tax-compliant culture across Pakistan.
Nearly one-third of Pakistan’s 5.5 million tax filers—about 1.7 million people—have declared zero taxable income, raising alarm within the Federal Board of Revenue. The FBR plans to issue notices and conduct extensive audits to detect tax evasion, especially among those showing lower income than last year.
The Appellate Tribunal of the Punjab Revenue Authority (PRA), Lahore, has ruled that the sale of developed plots does not attract provincial sales tax, marking a major shift from earlier precedents. The Tribunal held that outright sales, involving transfer of ownership, fall outside the scope of taxable services defined in the Punjab Sales Tax on Services Act, 2012. The decision overturns the department’s previous stance and is expected to significantly impact the real estate development sector.
A tax lawyer has filed a petition before the Federal Tax Ombudsman (FTO) seeking contempt action against Federal Board of Revenue (FBR) officials for not uploading the manual income tax return for Tax Year 2025 within the prescribed timeframe. Despite the FTO’s earlier order, the return form remains unavailable, causing delays and hardship for taxpayers relying on manual filing.
FBR has once again extended the income tax filing deadline, turning what was meant to be an exception into an annual tradition. While officials cite taxpayer facilitation, experts argue that chronic IT failures, constant legal changes, and poor coordination—not genuine hardship—force these extensions, undermining compliance and delaying revenue collection.