FBR extends return filing deadline for power utilities until September 30

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FBR extends the deadline for sales tax and Federal Excise Duty returns for August 2026 for DISCOs, K-Electric and other affected taxpayers.

The Federal Board of Revenue (FBR) has extended the deadline for filing sales tax and Federal Excise Duty (FED) returns for August 2026 for power distribution companies and certain other taxpayers until September 30, 2026.

In a notification issued on Friday, the FBR informed Chief Commissioners Inland Revenue, Large Taxpayers Offices (LTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) about the extension.

The tax authority said the decision was necessitated by technical issues encountered during the implementation of SRO 1245(I)/2026 dated July 31, 2026, particularly in the cases of distribution companies (DISCOs) and K-Electric.

The FBR also cited system-linkage issues involving corporate entities covered under Sales Tax General Order (STGO) 10/2026 dated July 14, 2026.

Return filing deadline extended to September 30

The FBR exercised its powers under Section 74 of the Sales Tax Act, 1990 and Section 43 of the Federal Excise Act, 2005 to extend the deadline for submitting sales tax and FED returns for the tax period of August 2026.

Under the latest directive, affected taxpayers can file their returns by September 30, 2026.

The extension covers DISCOs, K-Electric and taxpayers added to STGO 10/2026.

Sales tax liability must be paid on time

The FBR clarified that the relief applies specifically to the return filing deadline.

Taxpayers seeking the benefit of the extension must have deposited their sales tax liability within the prescribed due date.

The extension does not therefore alter the original deadline for payment of the applicable sales tax liability.

Technical issues prompt FBR relief

The FBR said the extension was granted to address technical difficulties affecting implementation of the revised requirements and system linkages.

The problems were particularly relevant to power distribution companies and K-Electric following the implementation of the new requirements under SRO 1245(I)/2026.

Corporate entities brought within the scope of STGO 10/2026 also faced system-linkage issues, prompting the tax authority to provide additional time for filing.

The latest directive allows the affected power utilities and other covered taxpayers to complete their August 2026 return-filing obligations by September 30 without facing filing-related consequences arising from the cited technical difficulties.