Karachi, August 18, 2023 – The Karachi Tax Bar Association (KTBA) has formally requested the Federal Board of Revenue (FBR) to consider extending the deadline for filing sales tax returns due to technical issues plaguing provincial filing portals.
The malfunctioning of these portals has created hurdles for taxpayers, making it difficult to complete the necessary tax filings.
READ MORE: Taxpayers Struggle with Sindh Sales Tax Return Compliance Amid Portal Dysfunction
In a letter addressed to the Chairman of the FBR on Friday, the KTBA highlighted that the electronic portal of the Sindh Revenue Board (SRB) and similar portals in other provinces have been experiencing significant technical disruptions for an extended period of time. As a result, the seamless filing of Federal Sales Tax Returns and associated payments has been compromised.
The inability to utilize the Cross Input Adjustment feature due to the non-functioning SRB portal has obstructed taxpayers from performing essential cross input adjustments between Provincial and Federal Sales Tax. This feature is an integral component of the tax return filing process.
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The KTBA revealed that they had already communicated the issue to the Chairman of the Sindh Revenue Board on August 17, 2023, in hopes of seeking a resolution. However, considering the complex nature of the problem, the association acknowledges that a collaborative effort involving SRB, PRAL (Pakistan Revenue Automation Limited), and FBR is required to address the issue comprehensively.
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The FBR Chairman’s attention was also drawn to the fact that recognizing the potential delays in restoring the functionality of the e-portal, various provincial sales tax regulators have opted to extend the deadline for return filing and tax payments for July 2023. This move was likely taken to accommodate taxpayers facing difficulties in adhering to the original deadlines due to the technical glitches.
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The Karachi Tax Bar Association’s plea to the FBR is underscored by the shared concern that taxpayers are being inconvenienced by circumstances beyond their control. A decision to extend the deadline for sales tax return filing is expected to provide relief to affected taxpayers and ensure that they have adequate time to complete their obligations accurately.
The FBR’s response to this issue is anticipated, as stakeholders await the decision that will alleviate the challenges posed by the malfunctioning provincial filing portals.
