Karachi, January 31, 2025 – The Karachi Tax Bar Association (KTBA) has raised concerns regarding the IRIS portal’s restriction on the auto revision of sales tax returns, causing challenges for taxpayers who need to rectify their declarations.
In an official letter addressed to Ms. Aisha Farooq, Director General of Withholding Taxes at the Federal Board of Revenue (FBR), KTBA highlighted that the IRIS system is preventing the automatic revision of sales tax returns under Section 26(3) of the Sales Tax Act, 1990.
Legal Framework for Sales Tax Return Revision
The letter, written by KTBA President Ali A. Rahim, emphasized that Section 26(3) of the Sales Tax Act, 1990 allows a registered taxpayer to submit a revised sales tax return within 120 days of filing the original return to correct any errors or omissions.
Under normal circumstances, revising a sales tax return requires Commissioner Inland Revenue’s approval. However, this approval is waived if the revision is submitted within 60 days and results in either an increase in tax payable or a reduction in a refund claim.
Technical Glitch in IRIS System
Despite the clear legal provisions, KTBA pointed out that a major issue has arisen in the IRIS system, preventing taxpayers from revising their sales tax returns even within the 60-day period—even when an additional tax payment is made.
“The IRIS portal fails to allow revision within 60 days despite the additional tax payment, which is in clear violation of the proviso to Section 26(3) of the Sales Tax Act, 1990,” stated KTBA President Ali A. Rahim.
KTBA’s Call for Immediate Action
The KTBA has urged the FBR Member to intervene and direct the necessary corrections in the IRIS portal to ensure compliance with Section 26(3). The association insists that automatic revision within 60 days should be permitted without requiring Commissioner Inland Revenue’s approval when all stipulated conditions are met.
By addressing this technical issue, KTBA believes that taxpayers will benefit from a seamless and legally compliant process, avoiding unnecessary delays and bureaucratic hurdles in revising their sales tax returns.