Karachi, March 27, 2025 – Taxpayers across Pakistan continue to face difficulties in filing their sales tax returns as persistent technical glitches on the IRIS portal of the Federal Board of Revenue (FBR) remain unresolved, despite an extended deadline.
The Karachi Chamber of Commerce and Industry (KCCI), in a letter addressed to FBR Chairman Rashid Mehmood Langrial on March 27, 2025, highlighted the challenges taxpayers are experiencing. The letter comes as the revised deadline for sales tax return submission has lapsed, yet the issues remain unaddressed.
Originally, the deadline for filing the sales tax return for the tax period of February 2025 was set for March 18, 2025. However, due to ongoing problems with the IRIS portal, the deadline was extended to March 27, 2025. Despite this extension, many taxpayers were still unable to complete their sales tax return submissions due to unresolved system errors and form-related complications.
The KCCI referred to its previous correspondence dated March 20, 2025, in which it had already raised concerns regarding the revision of the sales tax return form. It pointed out that the form had yet to be updated to accommodate various industries’ needs. A major issue remains with the Unit of Measurement (UOM), which is currently restricted to kilograms, making it impractical for several industries.
The KCCI emphasized that businesses across Karachi and the rest of Pakistan cannot be generalized under a single unit of measurement. Several industries require distinct units to report their stock and transactions accurately. The chamber cited specific examples, such as:
i. Aluminum Collapsible Tubes, LED Bulbs, Light Fixtures, Garments, Adhesives, and Sealants, which need to be measured in pieces rather than kilograms.
ii. Dyed and Finished Fabric, which should be reported in meters or yards rather than kilograms.
iii. Various other industries also face similar challenges due to the rigid UOM restrictions.
Considering these persistent issues, coupled with the upcoming Eid holidays as announced by the federal government, the KCCI has urged the FBR to extend the sales tax return filing deadline further. The chamber requested an extension until April 5, 2025, allowing businesses more time to submit their sales tax returns accurately without facing undue penalties.
The KCCI reiterated that without a proper revision of the sales tax return forms and a fully functional IRIS portal, taxpayers will continue to face unnecessary hurdles. It stressed the importance of swift action by the FBR to facilitate businesses and ensure a smoother tax return process for all industries.