Karachi, March 20, 2025 – A significant number of taxpayers have struggled to comply with the filing of their sales tax returns for February 2025 due to persistent technical issues on the IRIS portal.
These glitches have severely hindered the process, leaving many businesses unable to submit their returns before the deadline.
“The last date for filing sales tax returns for the period of February 2025 expired on March 18, but numerous taxpayers faced unresolved complications on the IRIS portal,” said Ali A. Rahim, President of the Karachi Tax Bar Association (KTBA), in a statement to PkRevenue.com.
So far no response is received from the FBR side regarding IRIS problems.
Rahim expressed deep disappointment with the FBR, stating that despite repeated appeals to the FBR chairman regarding these technical problems, no effective resolution was provided. He criticized the FBR’s demand for businesses to declare goods in weight instead of units, calling it an impractical approach that only exacerbates compliance challenges.
The KTBA had formally reached out to the FBR on March 14 and March 17, requesting urgent intervention to address the IRIS portal malfunctions and extend the sales tax return filing deadline. The association emphasized that businesses and tax practitioners have encountered serious functionality issues, making it nearly impossible to meet compliance requirements on time.
Key Issues with the IRIS Portal Identified by KTBA
1. HS Code Expansion from 4 to 8 Digits
o The IRIS portal has not been updated to accommodate the expansion of HS codes, causing major difficulties in sales tax return preparation.
o Businesses dealing with multiple HS codes face higher risks of errors and inconsistencies in their tax filings.
2. Mandatory Unit of Measurement (UoM) Association & Lack of Standard Measurement Units
o The IRIS portal now mandates UoM association with HS codes, making accurate reporting difficult.
o Many standard measurement units like tons, liters, and ounces are missing, further complicating the sales tax return filing process.
KTBA’s Urgent Demands to FBR
The KTBA has called on the FBR to take immediate action, including:
1. Fixing all technical glitches in the IRIS portal to ensure smooth and efficient filing of sales tax returns.
2. Extending the deadline until March 28, 2025, to provide businesses with ample time to comply after system improvements.
Unless these issues are resolved promptly, taxpayers will continue to face compliance hurdles, affecting the efficiency of sales tax collection. The KTBA has urged the FBR to act swiftly and provide a seamless filing experience for all businesses.