Karachi, February 8, 2025 – The Karachi Tax Bar Association (KTBA) has called on the Federal Board of Revenue (FBR) to defer the implementation of SRO 55(I)/2025, which introduces key modifications to sales tax return filing.
The association has requested a two-month extension to ensure taxpayers can comply without undue hardship.
In an official letter addressed to Dr. Najeeb Ahmad, Member (Inland Revenue – Policy) of FBR, the KTBA underscored that the new requirements outlined in SRO 55 have yet to be incorporated into the sales tax return system for January 2025. This omission has created confusion and uncertainty among taxpayers, who are now struggling to meet the reporting requirements before the approaching deadline.
According to KTBA President Ali A Rahim, the FBR made significant amendments to the Sales Tax Rules, 2006 through SRO 55(I)/2025, issued on January 24, 2025. The revised rules introduce mandatory submission of Annex “J” for all registered manufacturers and Annex “H-I” for commercial importers, distributors, and wholesalers supplying goods. These changes were set to take effect immediately, impacting sales tax return filings for January 2025.
However, the KTBA has raised serious concerns regarding the non-availability of the newly introduced annexures in the FBR’s electronic filing system. With the deadline for filing sales tax returns fast approaching, the absence of these annexures poses significant challenges for taxpayers, potentially resulting in non-compliance and financial penalties.
Given the complexities involved, the KTBA has proposed that the implementation of SRO 55(I)/2025 be postponed for at least two tax periods, extending the compliance timeline until March 2025. This delay, according to the association, would provide businesses and taxpayers ample time to understand and adapt to the revised reporting structure.
The KTBA has reiterated that compliance with tax regulations should not come at the cost of unnecessary difficulties for taxpayers. By granting an extension, the FBR can ensure a smoother transition to the new requirements, preventing last-minute filing issues and reducing the compliance burden on businesses. The association hopes the FBR will consider its request favorably to facilitate a fair and transparent tax reporting system.