Karachi Tax Bar demands extra time for 2025 returns

Tax Return Filing

Karachi, September 24, 2025 – The Karachi Tax Bar Association (KTBA) on Wednesday formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns for Tax Year 2025, citing serious technical and logistical challenges that are preventing taxpayers from meeting the statutory due date.

In a letter addressed to Rashid Mahmood Langrial, Chairman of the FBR, President of the Karachi Tax Bar, Ali A. Rahim, emphasized that KTBA has been closely monitoring the filing process and repeatedly highlighted the significant impediments caused by the IRIS system. Despite these warnings, the problems have not only persisted but worsened, severely restricting taxpayers’ ability to comply with legal obligations.

The Karachi Tax Bar explained that IRIS, being the sole portal for income tax, sales tax, and invoice integration compliance, frequently collapses under heavy digital traffic, particularly during working hours. This systemic failure has been compounded by several critical issues:

1. Systemic Breakdown Near Deadlines: Historical patterns show that as the statutory deadline approaches, IRIS often becomes virtually inoperative, leaving taxpayers and consultants unable to complete filings.

2. Technical Glitches and Legal Errors: Numerous computation errors and software glitches in the return forms make filing practically impossible. KTBA has repeatedly reported these issues, yet no acknowledgment has been received from the FBR.

3. Frequent Changes in Return Forms: Continuous modifications in formulas and computations, along with disappearing saved drafts after updates, have caused significant delays and wasted effort.

4. Post-Flood Challenges: The recent floods have left severe financial and emotional impacts, especially on business owners linked to the agriculture sector, making timely filing unrealistic for many.

Given these extraordinary circumstances, the Karachi Tax Bar respectfully urged that the statutory deadline for filing Tax Year 2025 returns be extended to October 31, 2025. The association recommended that the FBR exercise powers under section 214A read with section 119 of the Income Tax Ordinance, 2001, to grant this extension, ensuring taxpayers can comply meaningfully without undue stress or penalty.

The Karachi Tax Bar stressed that granting this extension will help protect taxpayers’ rights, prevent systemic chaos, and allow for proper filing amidst persistent IRIS portal failures and ongoing natural disaster recovery.