Karachi Tax Bar Association urges FBR to extend the Tax Year 2026 return deadline, citing increased disclosures, IRIS issues and growing compliance demands.
KARACHI: The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns for Tax Year 2026, citing a substantial increase in reporting and disclosure requirements.
The KTBA said the FBR’s objective of obtaining more comprehensive information through income tax return declarations had significantly increased the time required by taxpayers and tax professionals to prepare and electronically file accurate returns.
The association called on the FBR to provide taxpayers with sufficient additional time to meet the enhanced reporting requirements and achieve the highest possible level of compliance.
A KTBA delegation met FBR Chairman Rashid Mehmood Langrial in Karachi on September 9, 2026, to discuss several taxation matters, including income tax return filing, refunds of tax collected under Section 7E of the Income Tax Ordinance, 2001, taxpayer facilitation and measures to improve voluntary compliance.
The FBR delegation included Member Inland Revenue (Operations) Zubair Bilal, Member Inland Revenue (Policy) Sajjad Taslim Azam and Chief Revenue Domain Officer of Pakistan Revenue Automation Limited (PRAL) Zain ul Abideen Sahi.
The KTBA delegation was led by President Mehmood Bikiya and included former President Abdul Qadir Memon, Vice President Saud ul Hassan, General Secretary Shams Mohiuddin, Joint Secretary Abdul Wahab and Librarian Muhammad Tarique.
IRIS return filing issues discussed
The meeting reviewed technical problems affecting income tax return forms and the IRIS portal.
The FBR acknowledged KTBA’s active engagement with PRAL to help resolve technical issues and facilitate timely return filing.
According to the meeting, around 2.2 million income tax returns had been filed by September 9, compared with 1.724 million during the corresponding period of the previous year.
The FBR and KTBA agreed that continued coordination was necessary to ensure the smooth functioning of the IRIS portal and the prompt resolution of technical problems.
Section 7E tax refunds under review
The meeting also discussed refunds relating to tax collected under Section 7E of the Income Tax Ordinance, 2001.
The FBR informed the KTBA that a dedicated mechanism was being developed for issuing refunds in light of the judgment of the Federal Constitutional Court.
The tax authority said appropriate instructions would be issued for priority processing of eligible refund claims. The proposed mechanism is intended to facilitate taxpayers and improve the efficiency of the refund process.
Digital integration and e-invoicing
The KTBA welcomed the FBR’s technological and digitalisation initiatives aimed at improving the quality of tax declarations and documentation.
However, the association stressed the need for sustained taxpayer awareness and facilitation to support effective implementation.
The KTBA also raised concerns over penal action initiated by field formations in certain cases involving the service industry.
It requested that such cases be examined individually under the applicable law and dealt with appropriate leniency where warranted to encourage wider compliance.
Faceless audits and AI assessments
The prospective introduction of faceless assessments and artificial intelligence-based initiatives for future tax assessment and monitoring was also discussed.
The KTBA emphasised the importance of preparing taxpayers for the new system through greater awareness and compliance support.
The association recommended a phased transition towards the forthcoming assessment regime to minimise avoidable difficulties for taxpayers.
FBR seeks support for Shopkeepers Scheme
The FBR sought KTBA’s assistance in creating awareness about the Shopkeepers Scheme and encouraging taxpayers to comply with its requirements.
The KTBA assured the FBR of its continued cooperation in promoting taxpayer awareness and compliance.
The association also expressed its readiness to work with the tax authority to improve taxpayers’ understanding of the scheme.
FBR and KTBA reaffirm cooperation
The meeting concluded in a constructive and cordial atmosphere, with both sides reaffirming their commitment to regular dialogue and stronger institutional coordination.
The FBR and KTBA agreed that continued engagement would help improve tax administration, taxpayer facilitation and voluntary compliance.
The KTBA appreciated the FBR Chairman and senior officials for their time, responsiveness and continued engagement with the tax bar.