October 7, 2024
Return Filing Deadline Extension: Pressure Mounting on FBR

Return Filing Deadline Extension: Pressure Mounting on FBR

Karachi, September 29, 2024 – The Federal Board of Revenue (FBR) finds itself under mounting pressure to extend the deadline for filing income tax returns for the tax year 2024. With the September 30 deadline looming, only a single day remains for taxpayers to submit their returns, and complaints of system breakdowns and technical delays are pouring in from across the country.

As the apex tax-collecting authority in Pakistan, the FBR is being inundated with requests from individuals and organizations alike, urging for an extension. Despite the persistent clamor, the board has yet to make an official decision on the matter. However, given the pattern in previous years, sources within the FBR suggest that an extension may be on the horizon. Last year, the FBR granted a one-month extension, pushing the deadline to October 31, 2023, and many believe a similar reprieve might be announced this time as well.

One of the primary concerns fueling these extension demands is the ongoing dysfunction of the IRIS portal—the primary platform for e-filing tax returns in Pakistan. Over the past few weeks, the portal has been riddled with technical glitches and frequent crashes, leaving users frustrated and unable to submit their returns in a timely manner. This breakdown in the system has caused significant disruptions for taxpayers and tax professionals, many of whom are scrambling to meet the deadline despite the platform’s failures.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country’s foremost business representative body, has thrown its weight behind the call for an extension. The FPCCI has formally requested the FBR to grant a 30-day extension, citing the numerous technical difficulties and system inefficiencies that have plagued the tax filing process this year.

Atif Ikram Sheikh, President of the FPCCI, voiced his concerns over the situation, pointing out that the FBR’s online filing system has struggled to cope with the sheer volume of submissions. “The system is cumbersome for the common man, and it needs urgent improvements to address delays and downtimes,” Sheikh remarked. He also noted that the technical challenges faced by taxpayers, particularly small business owners and individuals unfamiliar with digital filing processes, are becoming untenable. The FPCCI believes that without an extension, many law-abiding taxpayers may find themselves penalized for circumstances beyond their control.

Adding to the chorus of demands, the Pakistan Tax Bar Association (PTBA) has also petitioned the FBR, citing the near-complete paralysis of the IRIS system as the primary reason for the filing delays. PTBA President Anwar Kashif Mumtaz, in a letter to FBR Chairman Rashid Mehmood, urged the board to announce a one-month extension to alleviate the mounting pressure on taxpayers. He stressed that the technical failings of the IRIS portal have created a situation where compliance is virtually impossible, and extending the deadline is the only logical solution.

The IRIS portal has long been the backbone of Pakistan’s online tax filing system, but its performance in recent years has left much to be desired. According to the PTBA, the system’s frequent shutdowns, computational errors, and sluggish response times have rendered it ineffective at handling the increased volume of tax returns.

As the clock ticks toward the September 30 deadline, the pressure on the FBR to act grows more intense. While the board has yet to announce any formal extension, the volume of complaints and the backing of key business and professional organizations suggest that an extension may be inevitable. However, unless significant improvements are made to the IRIS portal, even an extension may not be enough to restore confidence in Pakistan’s e-filing system.