Islamabad, September 26, 2024 – The Rawalpindi-Islamabad Tax Bar Association (RITBA) has raised concerns over technical issues in the Federal Board of Revenue’s (FBR) online tax filing system, IRIS, and called for an extension of the income tax return filing deadline for the tax year 2024.
In a letter addressed to Finance Minister Muhammad Aurangzeb, RITBA outlined various challenges taxpayers are facing and urged authorities to extend the filing deadline by at least one month, up to October 31, 2024.
The RITBA pointed out that the income tax return form for the 2024 tax year was issued under SRO 947(I)/2024, and the electronic return form for traders and non-filers for the tax year 2023 was notified through SRO 1321(I)/2024 on August 28, 2024. This gave taxpayers, especially traders, only 32 days to complete their returns—a timeframe RITBA deems insufficient given the complexities involved.
One of the significant challenges identified by RITBA is the consistent miscalculation in minimum tax computations within the IRIS portal, along with missing or incorrect columns in the form. These technical glitches have created major obstacles for taxpayers attempting to finalize and submit their returns. According to RITBA, these errors make it difficult for taxpayers to ensure the accuracy of their filings, causing delays and frustration.
RITBA also highlighted that the number of tax filers has grown substantially in recent years, a positive development for the country’s tax base. However, this increase in filers has placed immense pressure on the IRIS system, leading to frequent slowdowns, system crashes, and lengthy delays. The current load on the system, coupled with technical issues, is preventing a large number of taxpayers from submitting their returns in a timely manner.
Additionally, RITBA noted that the recent elections held by the Rawalpindi Chamber of Commerce and Industry (RCCI) further complicated matters. The elections, which involved the business community in the region, took up significant time and diverted attention away from tax return preparation, contributing to the delays in filing.
The association also pointed to the broader economic challenges in the country, including the ongoing energy crisis and frequent load shedding, which have affected the ability of both taxpayers and tax practitioners to work efficiently. The process of preparing and submitting tax returns, already a time-intensive task, has been made even more difficult by these disruptions. Furthermore, RITBA reported that many taxpayers did not receive necessary deduction certificates from various government bodies, such as GEPCO, LESCO, PTCL, and mobile service providers, until mid-August, which further delayed the filing process.
RITBA emphasized the importance of ensuring taxpayers’ constitutional rights are respected, specifically the right to a fair and reasonable opportunity to comply with tax obligations. The association argued that extending the deadline for tax filing would allow taxpayers to meet their obligations without unnecessary penalties for late submissions due to factors beyond their control.
“As of today, the IRIS portal continues to generate incorrect calculations in key areas, particularly in relation to minimum tax liabilities,” RITBA stated, underscoring the need to resolve these technical issues before the current deadline. They urged the government to address these concerns and extend the filing deadline to avoid further inconvenience for taxpayers and ensure accurate tax reporting.
RITBA concluded by requesting an extension of the tax return filing deadline for the 2024 tax year by at least one month, until October 31, 2024, to give taxpayers sufficient time to file their returns accurately and avoid unnecessary hardships.