Lahore, Pakistan – September 25, 2024 – The Lahore Tax Bar Association (LTBA) has formally appealed the government to extend the deadline for filing income tax returns for the tax year 2024.
In a letter addressed to Prime Minister Shehbaz Sharif, the LTBA has requested that the current deadline of September 30, 2024, be pushed to October 31, 2024. The LTBA cites a number of technical and logistical challenges, including issues with the FBR’s online tax system, IRIS, which have significantly hampered the tax filing process for individuals and Associations of Persons (AOPs).
The LTBA, representing a significant portion of the tax-filing community, explained that it has been inundated with complaints from members about persistent technical difficulties with the FBR’s IRIS system. The system, they claim, frequently becomes unresponsive, forcing users to restart the filing process, which leads to a loss of already entered data. Additionally, the system’s operation during weekends is limited, which further complicates the tax return filing for many.
Furthermore, the LTBA outlined several other critical issues impacting the e-filing of returns. These include the inability to generate Payment Slip IDs (PSIDs) for income tax withheld, difficulty in retrieving data related to tax withholdings against National Tax Numbers (NTNs), and errors in tax calculations. A particular point of concern was section 114(1), under which data from wealth statements is not being imported correctly, with last year’s opening balances not carried forward accurately.
The LTBA also highlighted the wider context that has exacerbated the challenges taxpayers are facing this year. The recent elections for the Lahore Chamber of Commerce and Industry (LCCI), held on September 23 and 24, 2024, have consumed much of the business community’s time and attention. As many LTBA members were involved in these elections, the disruption further delayed the processing of tax returns.
Compounding these issues are widespread slow internet speeds, which have slowed down the filing process, especially in remote areas. Additionally, a viral infection causing sore throats and fever has been affecting the population, with recovery times taking six to eight days. This illness has further diminished the capacity of taxpayers to focus on meeting the September 30 filing deadline.
In light of these challenges, the LTBA estimated that as of now, only 40% of tax returns are expected to be submitted by the deadline, with another 25% still in progress and 35% yet to be initiated. Given the significant number of taxpayers still struggling to file, the association warned that the remaining time is inadequate for many to complete their returns. Despite the fact that 90% of the tax demand has already been fulfilled through withholding and advance taxes, the association expressed concern that taxpayers may not be able to meet the final deadline without facing penalties or surcharges.
The LTBA has, therefore, urged the Prime Minister to consider granting taxpayers, especially those on the Active Taxpayers List (ATL), relief from any penalties or default surcharges if they fail to meet the September 30 deadline. Citing previous instances where extensions were granted, the LTBA requested the government to extend the deadline to October 31, 2024, to provide taxpayers with ample time to fulfill their obligations.
“This extension would allow taxpayers to arrange their payments and file accurate declarations without the fear of incurring penalties,” the LTBA argued in its appeal. The association believes that this additional time would be instrumental in enabling taxpayers to comply with the regulations, particularly in light of the various technical and health-related hurdles they are currently facing.
The government has yet to issue a formal response to the LTBA’s request, but given the widespread impact of these challenges, it is anticipated that the appeal may be considered favorably, as was the case in previous years when similar requests were made.
