Karachi, September 27, 2024 – As the Federal Board of Revenue (FBR) approaches the September 30 deadline for the filing of income tax returns for the fiscal year 2024, taxpayers and tax professionals across the country are increasingly voicing concerns over the feasibility of meeting this target.
Despite the FBR’s insistence on upholding the deadline, widespread appeals from business communities, tax associations, and individuals are fueling expectations of an extension.
The FBR has repeatedly announced that the September 30 deadline for income tax submissions would not be extended. However, growing challenges faced by taxpayers, along with vociferous demands from the tax fraternity and business associations, suggest that an extension may be inevitable. Reports indicate that over six million returns have already been filed for the tax year 2023, with numbers continuing to climb. However, tax professionals warn that this success may not be replicable in 2024 without additional time.
The Pakistan Tax Bar Association (PTBA), a prominent body representing tax professionals nationwide, has stressed the need for an extension, citing incomplete returns and ongoing preparatory work. According to the PTBA, only 40% of expected returns have been filed as of late September, with an additional 25% currently in progress and approximately 35% yet to begin the filing process. These figures highlight the logistical challenges faced by the tax fraternity in meeting the deadline.
“An extension is essential to ensure that taxpayers can file their returns accurately and in compliance with the law,” PTBA representatives urged. “Without more time, many filers will face penalties or submit erroneous returns, which would be detrimental both to taxpayers and the tax administration.”
The Karachi Chamber of Commerce and Industry (KCCI), the largest business body in Pakistan, has also called for an extension, proposing a new deadline of October 31, 2024. KCCI President Iftikhar Ahmed Sheikh has argued that the ongoing election activities in various chambers of commerce and trade bodies throughout the country have distracted business owners from finalizing their tax documentation. The chamber emphasized the undue burden this placed on taxpayers, many of whom are scrambling to meet the September 30 deadline.
“A one-month extension would provide ample time for businesses to focus on their tax obligations without compromising their participation in the crucial electoral processes that shape Pakistan’s commercial landscape,” Sheikh said in a statement.
Meanwhile, the Rawalpindi-Islamabad Tax Bar Association (RITBA) has raised concerns about persistent technical issues within the FBR’s online tax filing system, IRIS, further complicating the process for taxpayers. The association pointed to errors in the minimum tax computations and other discrepancies in the tax forms that have significantly delayed the return filing process. Moreover, RITBA noted that the sheer volume of tax filers has placed considerable strain on the IRIS system, leading to frequent system crashes, slowdowns, and delays.
“The technical glitches in IRIS are creating unnecessary obstacles for filers. With the system being overwhelmed by the increased number of tax filers, it’s becoming almost impossible for many to submit accurate returns on time,” RITBA stated.
The association also underscored the positive trend of an expanding tax base in recent years, with more individuals and businesses joining the formal economy. However, this growth has exposed the limitations of the existing infrastructure, necessitating urgent reforms to accommodate the larger number of filers.
Despite these mounting calls for leniency, the FBR has yet to indicate whether it will reconsider its stance on the deadline. As the tax community waits for a potential announcement, the pressure continues to build on the FBR to address both technical challenges and the widespread demands for an extension. The decision, expected in the coming days, could have far-reaching implications for taxpayers and the government’s ability to meet its revenue collection goals for the fiscal year.
