Islamabad, October 16, 2025 – The Federal Board of Revenue (FBR) has come under sharp criticism for its failure to issue the manual income tax return form for the Tax Year 2025, exposing what many describe as a new “hallmark of negligence” within the tax authority.
Despite two extensions in the 2025 return filing deadline, the FBR has yet to make the manual form available, creating widespread frustration among taxpayers and tax practitioners across Pakistan.
The issue reached the Federal Tax Ombudsman (FTO) after complaints were formally lodged by Advocates Mian Abdul Ghaffar and Waheed Shahzad Butt under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000. The complaints accused the FBR of maladministration and negligence for not uploading the manual income tax return form on its official portal.
FBR Officials Fail to Respond
During the FTO hearing held on October 15, 2025, senior FBR officials including Member IR (Operations), Member IR (Policy), and Director General (IT and DT) were directed to attend and submit para-wise comments. However, they failed to appear or provide written responses. Only the Regional Tax Office (RTO) Gujranwala submitted comments, confirming that the authority to issue manual forms lies exclusively with the FBR headquarters.
The FTO noted that the absence of key FBR officials and their failure to submit responses reflect “unreasonable neglect, inefficiency, and inattention” in the discharge of official duties—behavior that clearly constitutes maladministration under Section 2(3)(ii) of the FTO Ordinance.
Legal Background and Compliance Issues
Under Rule 73(2DD) of the Income Tax Rules, 2002, electronic filing of returns is mandatory only for individuals earning Rs. 1 million or more annually or with a turnover exceeding Rs. 50 million. Taxpayers below these thresholds are entitled to file manual income tax returns. In previous years, FBR consistently issued both electronic and paper-based return forms simultaneously, allowing compliance flexibility for small taxpayers.
This year, however, the FBR only uploaded the electronic return on the IRIS system on August 18, 2025, leaving less than 45 days until the original September 30 deadline—far short of the legally required 92-day window starting from July 1 each year. Complainants argued that this abridged timeline, combined with the absence of the manual return form, constitutes a direct violation of taxpayer rights and administrative fairness.
Technical Glitches and System Failures
Adding to taxpayers’ woes, the FTO heard that the IRIS e-filing system continued to face severe technical glitches, making online return filing nearly impossible for many users. Despite repeated complaints and a formal letter addressed to the Chairman FBR on September 17, 2025, no corrective measures were implemented. Practitioners reported system crashes, login failures, and data submission errors—issues that have persisted for years without resolution.
FTO Findings and Recommendations
After reviewing the evidence, the FTO concluded that FBR’s inaction and non-responsiveness amounted to “clear negligence, inefficiency, and maladministration.” The Ombudsman emphasized that FBR had previously issued manual return forms every year up to 2024, making the 2025 omission unjustifiable.
The FTO recommended that:
1. Member IR (Operations), FBR immediately ensure the uploading of the manual/paper tax return form for Tax Year 2025, in line with previous practice.
2. Director General (IT and DT) must fix technical issues and ensure the IRIS portal remains fully operational.
3. The FBR should report compliance within seven days to the FTO office.
Taxpayer Impact and Public Reaction
Tax professionals and taxpayers have expressed serious concern over FBR’s inefficiency, warning that such administrative lapses damage public trust and discourage voluntary tax compliance. Many argue that if the FBR cannot provide basic filing infrastructure, extending deadlines alone offers little relief.
Experts believe that consistent delays, unresponsiveness from key officials, and malfunctioning systems undermine Pakistan’s efforts to digitize tax administration and broaden the tax base. The Ombudsman’s ruling is expected to pressure the FBR into swift corrective action and greater accountability.
As the 2025 return filing process continues amid uncertainty, stakeholders urge the FBR to restore confidence through timely system upgrades, transparency, and respect for taxpayer rights.