PM Shehbaz to decide on tax filing extension today amid FBR system issues

ISLAMABAD: Prime Minister Shehbaz Sharif is expected to make a final decision today on whether to extend the deadline for filing income tax returns by one month. This consideration comes after the Federal Board of Revenue’s (FBR) system faced issues in processing returns with large volumes of data.

The FBR received multiple requests on Sunday from tax associations across the country to extend the deadline.

According to Business Recorder, Faraz Fazal Sheikh, President of the Rawalpindi Islamabad Tax Bar Association, explained that while simpler returns, such as those from salaried individuals, were successfully processed by the FBR system, returns with larger data volumes have not been uploaded over the past two days.

He stressed the need for an immediate extension to help compliant taxpayers meet their obligations.

Faraz added that despite previous communications with the FBR, these issues remain unresolved, preventing taxpayers from filing their returns by the original deadline of September 30, 2024. He described the IRIS software, used for filing, as inadequate due to ongoing technical problems, slow response times, and errors in tax calculations.

Despite assurances, these issues persist, making it difficult for taxpayers to file accurately and on time. He estimated that even if the system functioned properly, an additional 45 days would be required to complete all pending returns.

The growing complexity of tax laws and return forms has also made the filing process increasingly challenging, with many taxpayers struggling to comply. Faraz pointed out that these complications, along with the rising number of filers, call for an extension to ensure accurate and efficient submission.

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