Karachi, September 24, 2024 – The Pakistan Tax Bar Association (PTBA) has taken a stand for taxpayers by formally requesting Prime Minister Shehbaz Sharif to extend the deadline for filing tax returns. In a letter to the Prime Minister, the PTBA expressed concerns about the challenges faced by taxpayers in meeting the September 30 deadline, citing technical issues with the Federal Board of Revenue’s (FBR) online system and the increasing financial strain on tax filers.
The PTBA highlighted ongoing issues with the FBR’s online platform, which is essential for filing tax returns. According to the tax association, users frequently experience technical problems, such as the system freezing or malfunctioning. Worse, when users attempt to restart the filing process, the data they have entered disappears, leading to frustration and delays. The association also noted that the system’s functionality is particularly unreliable during weekends, further limiting taxpayers’ ability to file their returns on time.
In addition to these technical challenges, the PTBA brought attention to the government’s inability to implement the Tajir Dost Scheme effectively. The scheme was aimed at bringing more traders into the tax net by requiring them to register with the FBR. However, many individuals who should have registered under the scheme have not done so, openly challenging the government’s authority. The PTBA criticized the fact that non-filers continue to operate without consequences, while tax-compliant individuals face increasing pressure.
The PTBA expressed concern that taxpayers who have long been filing their returns in compliance with the law are now being unfairly penalized. The association emphasized that these individuals are already burdened with multiple forms of taxation, including income tax, super tax, tax on deemed income, and capital value tax, in addition to paying sales tax on almost every item they purchase. Despite contributing their fair share, the PTBA argued that taxpayers receive little in return from the government in terms of basic services and fundamental rights.
The PTBA warned that threatening tax filers with punitive measures, such as blocking their SIM cards or disconnecting utilities, could damage the social contract between the government and the people. “These measures will weaken the social contract,” the PTBA stated in its letter. It argued that such actions target those who are already complying with the law, while non-filers continue to evade accountability.
Historically, the deadline for filing tax returns has been extended to accommodate various challenges. However, the PTBA pointed out that this year, businesses and individuals are facing particularly severe financial difficulties. The association estimated that by the current deadline of September 30, only about 40% of returns will be filed, with another 25% in progress and 35% still in preparation. With such a large portion of returns incomplete, the PTBA stressed that more time is needed to ensure that all taxpayers can file their returns accurately and on time.
The PTBA suggested that the Prime Minister recognize the contributions of taxpayers who are already listed in the Active Taxpayers List (ATL) for 2023 by offering them an extension. It recommended allowing tax filers to submit their returns without penalties or surcharges until October 25, 2024. Such a gesture, the PTBA argued, would boost taxpayer confidence in the government and help bridge the trust gap between the two parties.
In conclusion, the PTBA urged the government to consider this relief as a way to acknowledge the sacrifices made by taxpayers, who continue to meet their obligations despite financial hardships. Providing an extension would strengthen the relationship between the government and its tax base, encouraging greater compliance and reinforcing the commitment of taxpayers to the country’s economic well-being.
