ISLAMABAD: In a controversial move seen as a violation of fiscal laws, the Federal Board of Revenue (FBR) has declared thousands of taxpayers inactive on November 1, 2025 — including those who had applied for extensions just a day earlier on October 31.
According to reports, numerous taxpayers had filed applications seeking extensions in time under the law, many of which are still pending adjudication. Legal experts and taxpayers argue that without formally rejecting these requests, the FBR cannot unilaterally change their status to “inactive.”
Adding to the controversy, the FBR has yet to upload the manual income tax return form for the Tax Year 2025, despite the filing deadline having expired. This delay has further complicated matters for taxpayers who are unable to comply through no fault of their own.
Aggrieved taxpayers from across Pakistan have appealed to the FBR Member Inland Revenue Operations to immediately restore their “active” status, emphasizing that those who applied for extensions within time should not be equated with non-filers.
The FTO’s earlier order noted that under Rule 73(2DD) of the Income Tax Rules, 2002, individuals earning below Rs. 1 million are entitled to file manual returns. However, the FBR’s failure to issue the required manual form for these taxpayers constitutes a serious administrative lapse, undermining taxpayer confidence and the integrity of Pakistan’s taxation system.
