The Karachi Tax Bar Association has urged the Federal Board of Revenue to speed up tax refunds, resolve IRIS portal problems and simplify compliance requirements for non-resident taxpayers following a meeting with FBR Chairman Rashid Mehmood Langrial.
KARACHI, October 15, 2026: The Karachi Tax Bar Association (KTBA) has raised key taxation, policy and operational concerns with the Federal Board of Revenue (FBR), seeking improved taxpayer facilitation and more efficient tax administration.
The issues were discussed during a meeting between KTBA representatives and FBR Chairman Rashid Mehmood Langrial at the FBR office in Karachi. Senior officials included Zubair Bilal, Member Inland Revenue Operations, and Zain ul Abideen Sahi, Chief Revenue Domain Officer at Pakistan Revenue Automation Limited (PRAL).
KTBA President Mehmood Bikiya welcomed the FBR’s initiative to maintain regular engagement with the association.
FBR Asked to Introduce Time-Bound Refund Processing
A major concern raised by KTBA was the delay in income tax and sales tax refunds. The association highlighted that compliant taxpayers often lack clarity about when excess tax payments will be returned.
In response, the FBR chairman directed the relevant officials to formulate a time-bound procedure to expedite the processing and issuance of income tax refunds.
KTBA also highlighted pending applications from taxpayers seeking revisions to their returns to claim refunds of tax paid under Section 7E. The association called for the instructions issued in the FBR letter dated September 23, 2026, to be implemented fully.
Foreign Investment and Sales Tax Procedures
The association urged the FBR to streamline procedures for foreign investment and ensure that non-resident taxpayers are not subjected to additional compliance requirements beyond those prescribed by law.
KTBA also raised concerns about Sales Tax General Order No. 25/2026, which requires registered persons to issue prescribed Stock Transfer Notes when moving goods between premises. The association identified practical difficulties involving toll manufacturing arrangements, deliveries through vans in the fast-moving consumer goods sector and goods placed for display.
FBR officials acknowledged the concerns and said the matters would be examined through internal consultations.
Seized Equipment and Recovery Measures
The meeting also addressed the release of business equipment and records held in custody under sales tax laws. The chairman acknowledged the difficulties faced by businesses and emphasised the need to release such items at the earliest opportunity.
KTBA further called for due process and reasonable time for taxpayers to comply before coercive recovery measures are initiated for advance income tax. The FBR acknowledged the matter for consideration.
Return Filing Deadline and IRIS Issues
KTBA highlighted delays in return-related notifications, persistent technical problems with the IRIS portal and difficulties in uploading bulk data. It urged the FBR to provide an appropriate filing period so taxpayers can submit accurate and complete returns.
Both sides reaffirmed their commitment to continued dialogue, improved taxpayer facilitation and stronger voluntary compliance across Pakistan.