The extension covers DISCOs, K-Electric and specified taxpayers, but sales tax liabilities must still be paid within the original due date.

ISLAMABAD: The Federal Board of Revenue (FBR) has extended the deadline for filing sales tax and Federal Excise Duty (FED) returns for August 2026 until October 2, 2026, for power distribution companies and specified taxpayers.

In a directive issued on Wednesday, the FBR said the extension applies to distribution companies (DISCOs), K-Electric and taxpayers covered by Sales Tax General Order (STGO) No. 10 of 2026, dated July 14, 2026.

The directive was issued to Chief Commissioners Inland Revenue of Large Taxpayers Offices (LTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs).

Extension subject to timely tax payment

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 return-filing deadline for the August 2026 tax period.

However, the extension is conditional on taxpayers having deposited their sales tax liability within the prescribed due date.

The latest directive therefore provides additional time for filing returns but does not extend the deadline for payment of the applicable sales tax liability.

Technical issues behind extension

The FBR had previously extended the filing deadline to September 30, 2026, amid technical difficulties linked to the implementation of SRO 1245(I)/2026 and system-linkage issues affecting corporate entities covered by STGO 10/2026.

The latest extension gives affected power utilities and other specified taxpayers until October 2 to complete their return-filing obligations, subject to the requirement that their tax liabilities were paid on time.