Karachi, September 19, 2025 – The Karachi Tax Bar Association (KTBA) has strongly urged the Federal Board of Revenue (FBR) to stop issuing recovery notices to taxpayers and immediately resolve long-standing technical issues on the IRIS portal.
In a formal letter to FBR Chairman Rashid Mahmood Langrial, KTBA President Ali A. Rahim expressed concern over the persistent breakdowns of the IRIS system. He noted that the deadline for the first installment of advance tax under Section 147 of the Income Tax Ordinance, 2001, fell on September 15, 2025. While system-generated reminders were issued to taxpayers, many individuals could not comply due to repeated portal malfunctions.
Rahim stressed that the problem has resulted in automated recovery notices under Section 138 being sent to taxpayers, which may soon lead to coercive actions such as bank account attachments, penalties, and default surcharges. “This is profoundly unjust, as otherwise compliant taxpayers are being penalized for failures that stem from the FBR’s own infrastructure,” the KTBA president explained.
He further highlighted that this technical disruption comes at a critical juncture, coinciding with the annual return filing period, making the process of filing returns and paying taxes nearly inoperable. Despite repeated engagements with the FBR, Rahim said, the IRIS system remains unreliable, undermining efforts to foster voluntary compliance.
The KTBA therefore requested three urgent measures:
1. Instruct field formations to immediately stop issuing recovery notices under Section 138 and suspend all coercive recovery measures.
2. Extend the deadline for payment of the first advance tax installment for Tax Year 2026 until October 10, 2025, without imposing penalties or surcharges.
3. Prioritize restoring the seamless and reliable functioning of the IRIS portal to prevent further disruption.
The association emphasized that granting relief would not only ease the pressure on taxpayers but also restore confidence in the FBR’s systems. The KTBA expressed hope that the tax authority will adopt a sympathetic and pragmatic approach, acknowledging that technical glitches should not translate into undue hardships for taxpayers.
By addressing these concerns swiftly, the FBR can demonstrate its commitment to a fair and taxpayer-friendly environment.