Karachi, October 29, 2023 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has made a formal request for an additional 15-day extension to the deadline for filing income tax returns.
In a statement, President of FPCCI, Irfan Iqbal Sheikh, urged the Federal Board of Revenue (FBR) to grant this extension without imposing any penalties, emphasizing the need to support and facilitate law-abiding tax filers within the business, industry, and trade community in Pakistan.
Irfan Iqbal Sheikh pointed out that this year has seen a notable increase of approximately 15 percent in the number of income tax return filers. Both the tax filers and the revenue officers require some additional time to manage the increased workload efficiently. It is an encouraging development to witness this rise in tax filers, and providing an extension would enable the remaining expected filers to complete their filing process.
The FPCCI President suggested that November 15, 2023, would be an appropriate date to accept income tax returns. He highlighted that the financial and accounting aspects of businesses in Pakistan have been severely impacted by factors such as historic inflationary pressures, rupee depreciation, import restrictions, significant increases in utility payments, and the overall economic conditions of the country.
Irfan Iqbal Sheikh also reiterated his demand for simplifying the income tax filing process and achieving additional tax revenues through an expanded tax base, rather than increasing the burden on active tax filers. Simplifying the income tax form and streamlining tax rates would encourage more businesses to file their income tax returns on time, resulting in a win-win solution.
Muhammad Suleman Chawla, Senior Vice President of FPCCI, emphasized that the economic challenges, particularly for small and medium-sized enterprises (SMEs), have placed significant constraints on their ability to pay fees to tax consultants and lawyers. Therefore, they require a little extra time to calculate and file their income tax returns.
The FPCCI’s request for an extended filing deadline aims to provide businesses, particularly SMEs, with the necessary breathing room to comply with their tax obligations. It reflects the need for flexibility in recognition of the unique economic challenges faced by businesses in Pakistan and the desire to encourage greater tax compliance through simplified processes.
