The Karachi Chamber of Commerce and Industry (KCCI) has called upon the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns, citing economic crises and political instability as the primary reasons for the request.
In a letter addressed to FBR Chairman Asim Ahmed, KCCI President Mohammed Tariq Yousuf urged an extension of the current deadline from October 31, 2022, to November 30, 2022.
Highlighting the economic challenges faced by businesses, President Yousuf emphasized the need for additional time, especially considering the aftermath of unprecedented flash floods that have adversely affected the cash flow of numerous enterprises. The repercussions of these floods have also impacted receivables from various parts of the country, further adding to the financial strain faced by businesses across sectors.
President Yousuf argued that extending the deadline would not only provide relief to the business community on a large scale but would also offer assistance to advocates, chartered accountants, and tax practitioners. The additional time would enable these professionals to effectively navigate the complexities of income tax return filings, contributing to a smoother process for all stakeholders involved.
The plea from KCCI comes against the backdrop of concerns raised by tax bars regarding the functionality of the IRIS portal, which is crucial for the online filing of returns. Both the Pakistan Tax Bar Association (PTBA) and the Karachi Tax Bar Association (KTBA) have communicated separately with FBR Chairman Asim Ahmed, expressing serious reservations about the portal’s errors that hinder the return filing process.
PTBA, in particular, highlighted multiple errors on the portal, asserting that these glitches are impeding the seamless filing of returns. The tax body urged the FBR to prioritize rectifying these errors before the filing deadline and to subsequently provide statutory time to taxpayers to fulfill their national duty without unnecessary impediments.
The collective calls for an extension and concerns raised by prominent business and tax bodies underscore the challenges faced by businesses and tax professionals in the current economic and political climate. The flash floods and the resulting financial setbacks have amplified the urgency for supportive measures, including an extended deadline, to ensure that businesses can fulfill their tax obligations diligently.
As stakeholders await a response from the FBR, the decision to extend the income tax return filing deadline will likely have far-reaching implications for businesses, tax professionals, and the broader economic landscape, reflecting the need for a balanced and responsive approach to the prevailing challenges.
