ISLAMABAD,: Mounting frustration among taxpayers and tax professionals over persistent glitches in the Federal Board of Revenue’s (FBR) IRIS portal has sparked strong speculation that the government may soon announce a third extension in the income tax return filing deadline for Tax Year 2025.
The FBR had already extended the deadline twice — first from September 30 to October 15, and then again to October 31 — following repeated system crashes and technical disruptions. However, tax practitioners say the system remains unstable, describing the situation as a “national compliance crisis.”
This week, both the Karachi Tax Bar Association (KTBA) and the Lahore Tax Bar Association (LTBA) issued strong appeals urging the FBR — and even Prime Minister Shehbaz Sharif — to intervene before the current deadline expires.
KTBA rebukes FBR for ‘chaotic updates’
In a detailed letter to FBR Chairman Rashid Mehmood Langrial, KTBA President Ali A. Rahim criticized repeated backend updates and unannounced system changes that, he said, have “shaken taxpayers’ confidence.” He welcomed the formation of a high-level committee to fix IRIS issues but called the timing of recent updates “chaotic and counterproductive during peak filing season.”
“Taxpayers deserve stability and fairness,” Rahim said, urging the FBR to grant a reasonable extension once the system is fully operational.
LTBA appeals directly to PM
In a rare move, LTBA President Muhammad Asif Rana wrote directly to the Prime Minister, demanding an extension until November 30, 2025, citing “serious technical flaws” and “legal violations.” He pointed out several major issues, including:
- Incorrect tax credit calculations under Section 4AB (super tax) on exempt income.
- Errors in apportionment under the minimum tax regime.
- Misapplication of Section 151 instead of Section 7B on profit-on-debt income.
- Delay in publishing the manual return form, which was released 219 days late, violating statutory timelines.
Rana argued that the delay itself “justifies an automatic extension.”
Pressure mounts for government intervention
Tax experts warn that continued inaction could trigger litigation from frustrated taxpayers. Both KTBA and LTBA have stressed that the ongoing technical chaos risks eroding public trust in Pakistan’s digital tax system.
With the deadline set to expire tonight, sources suggest that a third extension — possibly until November 30 — is under serious consideration. If approved, it would bring major relief to millions of taxpayers enduring one of the most turbulent filing seasons in recent memory.
