FBR shuts down 2025 return filing with huge deficit despite record compliance

Income Tax Return FBR

Islamabad, October 31, 2025 – The Federal Board of Revenue (FBR) officially closed the 2025 income tax return filing process on Friday, refusing to extend the deadline beyond October 31 despite a significant shortfall from active taxpayer numbers.

According to FBR’s statement, the decision followed direct instructions from Prime Minister Shehbaz Sharif, affirming that no further extensions would be granted. However, taxpayers facing genuine difficulties can still seek relief through FBR’s IRIS system by applying for extensions via respective field offices.

The FBR reported 5.9 million returns filed for Tax Year 2025, up from 5 million last year — a 17.6% increase. Yet, the figure still falls short of the 8 million active taxpayers benchmark achieved in the previous year, revealing a worrying deficit of over two million.

Out of the total, 3.6 million taxpayers filed with payments, showing an 18.6% increase from last year. Individuals contributed PKR 69 billion in tax, up by PKR 9 billion from 2024, indicating stronger compliance among active filers.

FBR credited this growth to its nationwide digital awareness drive, launched in collaboration with the Prime Minister’s Office and the Ministry of Information. Through robocalls, WhatsApp alerts, behavioral messages, and targeted emails, citizens were urged to fulfill their tax obligations.

Despite the record-breaking digital outreach, the tax regulator still faces a major challenge — bridging the gap between active and compliant taxpayers. With the deadline officially closed, FBR now turns its focus toward enforcement, compliance verification, and broadening the tax base in the months ahead.