Karachi, October 31, 2025 – Mounting pressure from tax professionals and widespread outrage over persistent glitches in the Federal Board of Revenue’s (FBR) online return filing system, IRIS, have fueled strong speculation that the government may soon announce a third extension in the income tax return filing deadline for Tax Year 2025.
The FBR had already pushed the original deadline from September 30 to October 15, and then again to October 31, following repeated system crashes and technical disruptions that disabled taxpayers’ ability to file returns smoothly. However, tax bars across the country say the portal remains unstable, calling the situation a “national compliance crisis.”
This week, the Karachi Tax Bar Association (KTBA) and the Lahore Tax Bar Association (LTBA) issued strong statements urging the FBR — and even the Prime Minister — to intervene before the deadline expires tonight.
KTBA’s Strong Rebuke to FBR
In a detailed letter addressed to FBR Chairman Rashid Mehmood Langrial, KTBA President Ali A. Rahim warned that the repeated backend disruptions and unannounced system updates have “shaken taxpayers’ confidence” and made timely compliance nearly impossible.
He appreciated the FBR’s recent decision to form a high-level committee (via Office Order dated October 28) to diagnose and fix the IRIS issues but criticized the timing of system updates, including one as recent as October 27, calling them “chaotic and counterproductive during peak filing season.”
“Taxpayers deserve stability and fairness,” Rahim said, demanding a reasonable extension to allow for accurate and confident filing once the system is fully restored.
LTBA Appeals Directly to Prime Minister
In an unprecedented move, the Lahore Tax Bar Association has written directly to Prime Minister Shehbaz Sharif, urging him to extend the filing deadline to November 30, 2025, citing “serious system flaws” and “legal violations” that have left taxpayers stranded.
LTBA President Muhammad Asif Rana highlighted major issues, including:
• Wrong tax credit calculations under Section 4AB (super tax) on exempt income.
• Faulty apportionment of taxes under the minimum tax regime.
• Misapplication of Section 151 instead of Section 7B on profit-on-debt income.
• Failure to publish the manual return form, as required by law.
Rana further revealed that the final return form was released 219 days late, violating statutory timelines and reducing the filing window by 49 days, a delay that, he said, “justifies an automatic extension.”
Mounting Pressure and Possible Third Extension
Legal experts warn that if the FBR fails to act, it could face a flood of litigation from frustrated taxpayers. Both KTBA and LTBA have emphasized that the chaos not only threatens compliance but also risks undermining public trust in Pakistan’s digital tax framework.
As the clock ticks toward the October 31 deadline, the government faces mounting pressure to step in. Sources close to the matter indicate that a third extension — possibly until November 30 — is now “under serious consideration.”
If approved, the move would come as a major relief for millions of taxpayers struggling to navigate what many are calling the most turbulent tax filing season in recent memory.