KARACHI: On behalf of the Karachi Tax Bar Association (KTBA), the body has once again raised alarm over persistent glitches in the Federal Board of Revenue’s (FBR) IRIS portal, which it says are obstructing the smooth filing of Income Tax Returns for Tax Year 2025.
In its latest communication, KTBA noted that no response has yet been received to its earlier letter dated August 28, 2025, pointing to a lack of seriousness in addressing taxpayers’ legitimate grievances. The association stated that the current anomalies in IRIS are inconsistent with the statutory scheme of the Income Tax Ordinance, 2001, and are causing undue hardship.
The KTBA underlined that tax credit on donations under section 60 is not being allowed against surcharge under section 4AB, despite the fact that surcharge falls within the definition of “tax.” It argued that this denial is against settled principles of law, as reaffirmed by the Supreme Court. Similarly, it highlighted that surcharge is being treated as a separate levy and not adjusted against advance tax already paid, which the association termed as double taxation.
Further, KTBA objected to the system’s treatment of additional withholding under section 100BA as minimum tax, arguing that such mechanical application undermines taxpayer confidence. The body also pointed out that tax collected on electricity bills is being treated as minimum tax in all cases, ignoring statutory provisions where such tax is adjustable. Moreover, turnover calculations for minimum tax on services remain flawed due to inclusion of sales tax amounts.
The association stressed that IRIS requires stability and predictability, urging FBR to rectify these anomalies urgently to restore taxpayer confidence and ensure compliance.
