Karachi, September 28, 2024 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday urged the government to extend the deadline for filing income tax returns by a clear 30 days, citing technical challenges and system inefficiencies.
FPCCI President Atif Ikram Sheikh emphasized the ongoing technical difficulties and delays encountered by taxpayers when filing their returns. He pointed out that the online tax filing system, managed by the Federal Board of Revenue (FBR), remains plagued by limitations, causing it to struggle with the sheer volume of filings. “The system is cumbersome for the common man, and it needs urgent improvements to address delays and downtimes,” he remarked. He recommended a 30-day extension as a special case to ensure the system can handle the increased demand and provide taxpayers with enough time to comply.
Sheikh reiterated the FPCCI’s long-standing advocacy for simplifying Pakistan’s taxation system, particularly the income tax return process. As the apex body representing the business community, FPCCI has consistently highlighted the need for reforms to facilitate taxpayers. “It is in the national and economic interest to assist as many citizens as possible in filing their returns. A more inclusive and documented economy will be more attractive to international lenders and financial institutions,” he added.
The FPCCI chief also stressed the urgency of FBR’s digitalization efforts, which would reduce human involvement, save time, and minimize errors in tax documentation. He argued that this digitalization would improve procedural efficiency while reducing complaints and discrepancies. “A streamlined system will not only benefit tax filers but will also strengthen the FBR’s ability to manage the tax system more effectively.”
Sheikh also highlighted significant delays by the FBR and Pakistan Revenue Automation Limited (PRAL) in issuing return forms. According to regulations, draft electronic and manual return forms were to be released by January 1, 2024, but were only made available on June 21, 2024—five months late. Final return forms, due by January 31, were delayed until July 4, causing further complications for taxpayers.
He further noted that salaried individuals, who already pay taxes through deductions at source, should not be burdened by unnecessary filing complexities. “FBR should align its processes with international best practices and only require salaried individuals to reconcile their taxes.”
In conclusion, Sheikh called for a 30-day extension without penalties, arguing that such a grace period would boost compliance and address legitimate concerns faced by taxpayers. “We must consider the bigger picture and respect the procedural challenges that filers are encountering,” he said.
