The Karachi Tax Bar Association (KTBA) has written to the Federal Board of Revenue (FBR) highlighting several concerns related to the recent tax return filing process for Tax Year 2025. Despite the extended deadline of October 31, 2025, taxpayers and practitioners faced persistent challenges due to IRIS system issues.
The KTBA expressed disappointment over the FBR's rigid stance on denying further extensions, despite unresolved system issues. The association pointed out several key issues, including:
- Applications for extension: Many taxpayers were compelled to file individual applications for extension of time, which became redundant after the general extension was notified.
- Cyclostyle orders: Commissioners Inland Revenue issued template orders without considering individual facts and circumstances, defying the quasi-judicial nature of the function.
- Conditional extensions: Certain orders included conditions not envisaged in law, such as mandatory prior payment of tax.
- Pending requests for extension: A large number of applications for extension of time are still pending adjudication, and taxpayers are facing unnecessary hardship.
- Exclusion from Active Taxpayers' List (ATL): Taxpayers who filed extension requests have been excluded from the ATL, causing financial repercussions.
The KTBA requested the FBR to review and rectify these issues, ensure smooth functionality of the IRIS portal, and engage with stakeholders to identify and address systemic issues on a timely basis. The association reiterated its commitment to supporting the objectives of broadening the tax base and promoting voluntary compliance.
The FBR's attention is crucial in resolving these issues and restoring taxpayers' confidence in the tax system. The KTBA's efforts are expected to promote a stable, responsive, and taxpayer-friendly digital infrastructure, enhancing compliance and promoting a positive tax environment.
