Islamabad, September 13, 2025 – The Federal Board of Revenue (FBR) has clarified the rules for taxpayers who need extra time to file their sales tax return. Through the updated Sales Tax Act, 1990, as amended by the Finance Act 2025, Section 26AB outlines how a registered person may apply for an extension in filing their return.
How to Apply for Extension
Any registered taxpayer who is required to submit a return under Section 26 can apply in writing to the Commissioner Inland Revenue. The application must be submitted before the original due date of the return, making it important for taxpayers to act on time.
Valid Grounds for Extension
The law allows an extension if the Commissioner is satisfied that the taxpayer could not file due to one of the following reasons:
• Being outside Pakistan at the time of filing,
• Illness or other unavoidable mishaps,
• Any other reasonable cause beyond the taxpayer’s control.
In such cases, the Commissioner can grant up to 15 days of additional time. However, in exceptional situations, a longer extension may be allowed.
Role of the Chief Commissioner
If the Commissioner rejects or limits the application, the taxpayer may approach the Chief Commissioner. The Chief Commissioner has the authority to grant a further extension of up to 15 days, again subject to exceptional circumstances.
Important to Note
Even if an extension is granted, the due date for payment of sales tax does not change. This means the tax amount must still be deposited on time to avoid default surcharge under Section 34.
In short, taxpayers facing genuine difficulties now have a clear legal pathway to request more time for filing their return, while ensuring the tax payment obligation remains intact.
Disclaimer: This article is provided for general information only. It should not be treated as legal or tax advice. For guidance specific to your situation, please consult the Federal Board of Revenue (FBR) or a licensed tax professional.