Lahore, August 11, 2025 – In a move that could send shockwaves through Pakistan’s tax community, the Lahore Tax Bar Association (LTBA) has delivered a stinging rebuke to the Federal Board of Revenue (FBR), challenging the legality of the ongoing 2025 return filing process — which, astonishingly, has commenced without the issuance of a formal notification.
In a hard-hitting letter to the FBR chairman, LTBA President Muhammad Asif Rana accused the tax authority of breaching its own rules by failing to issue the final income tax return form for tax year 2025, despite a clear legal requirement to do so. Under SRO 1212(I)/2025 dated July 8, 2025, the FBR released only a draft version of the return for public consultation, as required by Rule 34A of the Income Tax Rules, 2002. That rule explicitly states the final return must be notified within thirty days. The LTBA has made it clear — that deadline has come and gone.
“This delay is no minor hiccup,” warned the LTBA. “It’s creating a cloud of uncertainty, crippling the filing process, and putting taxpayers at risk of missing the statutory deadline of September 30, 2025.” The association also took aim at the FBR’s IRIS e-filing system, describing it as riddled with glitches that are paralyzing users. Without the finalized return form, countless taxpayers cannot even begin — let alone complete — their filing.
In a damning breakdown, the LTBA exposed multiple system failures:
• Non-Resident Lockout – Selecting “non-resident” in IRIS immediately crashes access to the return form, making filing impossible for overseas Pakistanis.
• AOP Credit Denials – Under Section 235, Association of Persons are being refused proper credit for withheld tax, preventing return submission even when no tax is due.
• Import/Export Chaos – Taxes withheld under Sections 148 (imports) and 154 (exports) are being treated inconsistently, creating confusion and unfairness among businesses.
The LTBA didn’t mince words, accusing the FBR of undermining taxpayer confidence, jeopardizing revenue collection, and throwing the entire 2025 return filing season into disarray. The association has demanded an immediate release of the official notification, swift rectification of IRIS errors, and uniform treatment of all withholding tax regimes.
Unless the FBR acts fast, the LTBA warns, the 2025 return filing process could descend into a full-scale compliance crisis — with taxpayers, practitioners, and the entire revenue system caught in the crossfire.