The assurance was given during a meeting between an LCCI delegation and PRA Chairman Moazzam Iqbal Sipra where issues faced by freight forwarders and taxation-related matters were discussed.

The meeting focused on challenges confronting the business community and measures to improve the tax system. The delegation members said the chamber would support the PRA’s efforts to bring more businesses into the tax net.

Speaking on the occasion, Sipra said efforts would be made to strengthen guidance and facilitation for the business community regarding sales tax on services. He said digital systems were being used to improve convenience, transparency and effective monitoring of tax-related matters.

He emphasised that proposals from stakeholders would be given due consideration to make the tax system more business-friendly. Cooperation from the business community was essential for expanding the tax net and improving compliance with tax laws, he added. The PRA chairman also directed that special awareness sessions be organised to educate businesspeople about tax laws and procedures.

He said the Punjab government was taking practical measures to facilitate business activities and improve the efficiency of the tax payment process.

Copyright Business Recorder, 2026

According to an FBR statement, the suspended officers are in BS-20 and BS-19, while the two repatriated officers are both in BS-20.

The FBR said the conduct prima facie violated Rules 23 and 26 of the Civil Servants (Conduct) Rules, 2026, framed under the Civil Servants Act, 1973, and constituted misconduct under Rule 34.

The tax authority said it would initiate disciplinary proceedings against the officers under the Civil Servants (Efficiency and Discipline) Rules, 2020, adding that it would not tolerate such misconduct.

So far, the FBR has received 6.9 million income tax returns till October 15, 2026.

According to Circular No. 04 of 2026-27 issued by the FBR on Thursday, the extension applies to persons who were required to file their income tax returns by September 30, 2026, and whose deadline had earlier been extended to October 15, 2026.

The FBR issued the circular in exercise of its powers under Section 214A of the Income Tax Ordinance, 2001.

The circular, dated October 15, 2026, stated that the decision had been taken in view of requests received from various trade bodies and tax bar associations.

Copyright Business Recorder, 2026

The FBR had previously extended the deadline from September 30 to October 15.

“This extension is being granted in view of the requests received from various trade bodies and tax bar associations,” the FBR notification read.

The latest extension gives individuals, businesses and companies additional time to fulfill their tax obligations and file their returns.

Businesses and trade bodies had urged the FBR to extend the deadline, citing difficulties faced by taxpayers in completing their returns within the prescribed time. They had called for additional time to facilitate compliance and enable taxpayers to fulfil their filing requirements.

Some tax experts had said that the FBR was bound to extend the date for filing of income tax returns up to December 2026 irrespective of number of returns received till October 15, following late notification of final return on September 2, 2026.

Fazal Faraz, a tax expert from Islamabad-Rawalpindi, had told Business Recorder that the draft Income Tax Return for Tax Year 2026 was circulated through SRO 835(I)/2026 dated May 7, 2026, under section 237(3) of the Income Tax Ordinance, 2001. The final return form was notified vide SRO 1495(I)/2026 dated September 2, 2026. Thus, three months period needed to be given to the taxpayers for filing of return as per law.

Karachi’s Korangi Association of Trade and Industry (KATI) president Sheikh Umer Rehan had also urged the government and the FBR to extend the deadline for filing income tax returns by another month, citing persistent technical glitches and slow processing on the FBR’s online IRIS portal.

President Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) Nadeem Ahmed Siddiqui, senior vice president Muhammad Fahad Mian, and Vice President Irfan Arbiani had jointly urged Finance minister Aurangzeb and FBR chairman to extend the deadline for filing income tax returns.

In their joint statement, the three office-bearers had stated that despite the earlier extension, taxpayers, particularly traders, small and medium-sized enterprises (SMEs), and tax consultants, had continued to face difficulties due to the introduction of new return forms, additional disclosure requirements, wealth statement reconciliation, and technical issues with the IRIS portal.

The IRIS portal (Integrated Revenue Information System) is Pakistan’s official digital tax management system operated by the FBR.

The FBR has drafted notifications proposing amendments to the Income Tax Rules, 2002, replacing the word “YouTube” with “social media platforms” in two separate provisions dealing with income tax.

Under the first proposed amendment, the FBR seeks to revise clause (d) of sub-rule (1) of rule 13ZP in Chapter IIA of the Income Tax Rules, 2002. The amendment is being proposed under section 99C, read with sub-section (1) of section 237 of the Income Tax Ordinance, 2001.

The second draft notification proposes a similar change in clause (d) of sub-rule (1) of rule 19R in Chapter VA of the Income Tax Rules, 2002. This amendment is proposed under section 99C, read with clause (b) of sub-section (3B) of section 101 and sub-section (1) of section 237 of the Income Tax Ordinance, 2001.

By replacing the platform-specific reference to YouTube with the broader term “social media platforms”, the proposed changes could extend the relevant provisions beyond YouTube to other social media services.

The FBR has invited objections and suggestions from all persons likely to be affected by the proposed amendments. Stakeholders have been given seven days from publication of the draft notifications in the official Gazette to submit their feedback for consideration by the Board.

The notifications state that objections and suggestions received within the prescribed period will be considered by the FBR before proceeding further.

The proposed amendments remain at the draft stage and do not, by themselves, establish that the changes have been finalised or brought into force.

M. Amayed Ashfaq Tola, President Tola Associates told Business Recorder here on Thursday that the “Attribute” tab, which was available in last year’s return form, has been removed from this year’s version of the return on the IRIS portal.

In the previous year, taxpayers used the “Attribute” tab to apply the reduced tax rates applicable to foreign income, including foreign dividends and profit on debt, etc, covered under the Avoidance of Double Tax Treaties.

With the tab missing this year, Tola said, taxpayers are left with only two options while declaring such income. They can either show it as exempt income or offer it for tax at the normal applicable rates.

Neither option allows the correct treatment of foreign income in the return, he added. Treating the income as exempt may lead to incorrect reporting, while taxing it at normal rates would result in a higher tax liability than what the relevant tax treaty envisages and provides.

He said the absence of the “Attribute” tab is creating hurdles in correctly filing returns and applying the relevant reduced rates on foreign income.

Tax experts urged the FBR to restore the facility on the IRIS portal so that taxpayers can file accurate returns.

Copyright Business Recorder, 2026

However, the collection of Infrastructure Development Cess (IDC) witnessed a substantial decline due to the closure of the Afghan border.

According to statistics shared by the authority, the collection of Sales Tax on Services during July to September 2026 stood at Rs12.666 billion, showing an increase of 24 percent compared to Rs10.210 billion collected during the corresponding period of the previous financial year.

During the same period, the collection of Infrastructure Development Cess (IDC) declined from Rs2.242 billion last year to only Rs457 million, registering an 80 percent decrease. As a result, an additional Rs2.456 billion was collected under Sales Tax on Services, while IDC collection declined by Rs1.785 billion.

The overall collection from STS and IDC during July to September 2025-26 stood at Rs12.452 billion, which increased to Rs13.123 billion during the first three months of the financial year 2026-27. Thus, an overall increase of 5 percent was recorded in the combined collection.

In the month of September, the authority collected Rs4.650 billion in head of Sales Tax on Services, registering a 35 percent increase compared to the same month last year. On the other hand, IDC collection in September declined by 82 percent to only Rs157 million.

Due to the closure of the Afghan border, Khyber Pakhtunkhwa faced a cumulative revenue shortfall of Rs1.785 billion under IDC during the first three months of the financial year 2026-27.

Despite this decline, the increase in Sales Tax on Services collection enabled KPRA’s combined quarterly collection from Sales Tax on Services and Infrastructure Development Cess to remain 5 percent higher than the corresponding period of the previous year.

Copyright Business Recorder, 2026

The FBR has issued an S.R.O. 1665(I)2026 to amend Income Tax Rules, 2002 on Thursday.

Now, the National Faceless Center of the FBR would only conduct faceless audit and assessments against taxpayers under section 177 or section 214C and proceedings under section 111 (explained income) of the Income Tax Ordinance 2001.

A case shall be assigned to the Center where the taxpayer, class of taxpayers, income, class of incomes, case or class ofcases has been assigned to the Center by the Board under sub-section (2) of section 122E.

The FBR has constituted four wings including Audit Wing; Assessment Wing; Quality Control Wing and Field Operations Wing under the National Faceless Center.

According to the notification, the Center shall comprise a Director General and as many Chief Commissioners, Commissioners, Additional Commissioners, Deputy Commissioners, Assistant Commissioners, and any of the Income Tax Authorities.

The proceedings to be conducted in faceless manner has been explained by the FBR. In the cases towhich this Chapter applies, the following proceedings shall be conducted through the Center in the manner provided:-

(a) audit under section 177 or section 214C; (b) proceedings and orders under section 111 and (c) assessment, amendment of assessment, best judgment assessment and provisional assessment under Part II of Chapter X, including sections 120, 121, and 122 and (d) any proceeding incidental or ancillary to a proceeding referred to in clauses (a) to (c) including the issue of notices under sections 176 and 177, the obtaining ofinformation and evidence, and the imposition of penalty or default surcharge arising from the proceeding, FBR added.

Copyright Business Recorder, 2026

A notification issued by the FBR on Thursday revealed that where Federal Excise Duty is chargeable on any goods or services, the electronic invoice shall contain the particulars required under the Federal Excise Act, 2005 and Islamabad Capital Territory (Tax on Services) Ordinance, 2001 and the rules made thereunder and, where sales tax, Federal Excise Duty and tax on services are chargeable on the same transaction, a single electronic invoice containing separately identifiable particulars of each tax or duty shall be sufficient for purposes of electronic invoicing under the said laws.

A person already integrated with the Board’s computerized system under this procedure shall not be required to undertake a separate technical integration solely by reason of liability under the Federal Excise Act, 2005 or the Islamabad Capital Territory (Tax on Services) Ordinance, 2001, the FBR added.

Copyright Business Recorder, 2026

According to the circular, the Sindh Revenue Board (SRB), with the government of Sindh’s approval, has extended the due date for filing Agricultural Income Tax Returns for the tax year 2025-26. Taxpayers who were required to submit their Agricultural Income Tax Returns by 30th September, 2026, may now file the return by 31st October, 2026.

Copyright Business Recorder, 2026

According to Federal Board of Revenue (FBR) data, 5,767,384 income tax returns had been filed by September 30, compared with 3,980,692 returns on the same date last year, reflecting an increase of about 1.79 million filings in one year.

The latest increase continues the sharp expansion in the tax filing base witnessed over the past three years. Returns filed by the end of September stood at 1.86 million in 2022, 1.92 million in 2023, 3.72 million in 2024, 3.98 million in 2025 and 5.77 million this year—almost three times the 2022 level.

The composition of new filers has also changed significantly, with the non-salaried segment emerging as the main source of growth.

Returns filed by non-salaried individuals—including traders, shopkeepers, professionals and self-employed persons—increased 60 percent to 3.81 million from 2.38 million last year. The addition of 1.43 million non-salaried filers represents around four-fifths of the total increase.

Non-salaried returns stood at only 965,000 five years ago and accounted for roughly half of all filings. They now represent around two-thirds of total returns.

Salaried returns increased 22 percent to 1.9 million, while returns filed by associations of persons, including partnerships, rose 33 percent to 53,756.

The increase in filer numbers, however, does not necessarily translate into a corresponding rise in tax collection. Around 39 percent of returns filed this year were nil returns, broadly unchanged from last year.

At the same time, returns declaring income above the taxable threshold increased 37 percent from 1.82 million to nearly 2.5 million. Among non-salaried individuals, such returns rose 47 percent, while the increase among salaried persons was 32 percent.

Payment filers—those showing tax paid with their returns—increased 38 percent to 3.35 million. Within the non-salaried category, payment filers rose around 50 percent to 1.75 million. Five years ago, returns above the taxable threshold numbered around 900,000, while payment filers stood at 1.29 million.

Tax paid with returns by individuals increased 11 percent to Rs34.5 billion, while tax paid by associations of persons rose 16 percent to Rs3.7 billion.

The corporate segment, however, recorded a decline. Only 7,953 company returns had been filed by September 30 compared with 11,206 on the same date last year. Tax paid with company returns also fell to Rs39.1 billion from Rs49 billion.

Consequently, total tax paid with returns by September stood at Rs77.3 billion, around 7 percent lower than Rs83.3 billion recorded last year, despite the substantial increase in the number of filers.

FBR officials attributed the decline in company filings largely to timing, saying many companies had delayed filing in anticipation of an extension in the filing deadline. The deadline has now been extended, and officials expect company returns and associated payments to increase in the coming weeks.

The rise in filings has been attributed by officials to improved use of third-party data, a simplified return filing process and stronger enforcement.

Information from banks, property registries, vehicle registration records and withholding statements is being matched against tax returns to identify persons with taxable capacity who have not filed returns.

Officials also pointed to the simplified return, which enables many salaried individuals and small businesses to file without professional assistance. Restrictions on major economic transactions for non-filers have further increased the cost of remaining outside the formal tax system.

Copyright Business Recorder, 2026

The FBR announced the extension through Circular No. 3 of 2026-27 (Income Tax), issued on Wednesday following requests of trade bodies and tax bars.

Copyright Business Recorder, 2026

The extension will provide taxpayers additional two weeks to submit their income tax returns. The previous deadline for filing returns was September 30.

“In exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001, the Federal Board of Revenue is pleased to communicate that the date of filing of Income Tax Return for Tax Year 2026, for the persons who are required to file their returns by September 30, 2026 is hereby extended up to October 15, 2026 in view of the requests from various trade bodies and tax bar associations,” the FBR said in a notification.

The FBR’s notification came hours after a fake circular claiming an extension of the tax filing deadline was circulated on social media.

On Monday, Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), urged the government and the FBR to extend the deadline for filing income tax returns by one month – moving the cutoff date to October 31, 2026 – to facilitate trade, industry, and other tax filers.

The apex trade body had maintained that extension was not a concession but a practical necessity to ensure maximum tax compliance, broaden the tax base, and alleviate pressure currently faced by the business community, small and medium enterprises (SMEs), and individual taxpayers.

“The circular circulating in the media regarding the extension of the date for submitting income tax returns for the tax year 2026 is fake. No such circular has been issued by the FBR,” the authority said in a post on a social media platform.

A day ago, the Pakistan Chemicals & Dyes Merchants Association (PCDMA) urged the FBR to extend the deadline for filing Income Tax Returns for the tax period ending September 30, 2026, by one month, citing persistent malfunctioning and instability of the IRIS portal.

In a letter addressed to FBR Chairman Rashid Mehmood Langrial, PCDMA Chairman Salim Valimuhammad said tax practitioners and taxpayers were facing serious difficulties in transmitting their Income Tax Returns within the stipulated deadline due to the continued technical problems with the IRIS portal.

FBR has so far received around 4.7 million income tax returns for Tax Year 2026, against 3.2 million returns received during the corresponding period of last fiscal year.

The number of returns filed till now is around 1.52 million higher than the previous year’s figure.

In a letter addressed to FBR Chairman Rashid Mehmood Langrial, PCDMA Chairman Salim Valimuhammad said tax practitioners and taxpayers were facing serious difficulties in transmitting their Income Tax Returns within the stipulated deadline due to the continued technical problems with the IRIS portal.

He said the issue had repeatedly been brought to the attention of the PRAL team through individual complaints as well as collective representations. However, the portal had reportedly remained dysfunctional and unstable for more than a week, making it difficult for tax practitioners to complete their statutory obligations on time.

“Despite repeated requests for remedial measures, the issues remain unresolved, resulting in considerable hardship for the tax fraternity,” Valimuhammad said.

The PCDMA chairman therefore requested the FBR chairman to extend the due date for filing Income Tax Returns for the tax period September 30, 2026, up to October 30, 2026, in the interest of justice and to facilitate taxpayers and tax practitioners in fulfilling their statutory obligations without undue hardship.

Valimuhammad appreciated the FBR’s attention to the matter and expressed hope that the requested extension would be granted to provide relief to the tax fraternity.

Copyright Business Recorder, 2026

Speaking at a consultative meeting held at Federation House, FPCCI President Atif Ikram Sheikh said shopkeepers enrolled in the scheme will display a taxpayer plate outside their businesses, after which no one will be able to harass them.

FPCCI Senior Vice President Saqib Fayyaz Magoon said the Rs25,000 fixed tax is in traders’ favour. He said that, beyond the fixed amount, traders will pay only 1 percent of their turnover.

Mian Zahid Hussain, chairman of FPCCI’s Policy Advisory Board, said traders are ready to play their part in economic growth. FPCCI Vice President Aman Paracha said the scheme is better than all those offered earlier. FPCCI Convener Abdul Rehman Khan urged traders to come forward with any further facilitation they need, saying they could tell the federation without hesitation. Chief Commissioner RTO-I Karachi Qazi Hifz-ur-Rehman also spoke about the benefit of the scheme.

Copyright Business Recorder, 2026

A Division Bench passed the interim order in W.P and issued notices to the respondents for October 15, 2026. Counsel for PASSCO, Ch. Anwaar-ul-Haq Arif told the Court that the corporation had challenged an assessment order dated June 22, 2026 before the Commissioner (Appeals). That appeal was dismissed on September 14, 2026, because PASSCO, as a government-owned entity, has a remedy of Alternative Dispute Resolution (ADR) under Section 134A of the Income Tax Ordinance, 2001. PASSCO then filed a petition under Section 134A on September 25, 2026. Under Section 134A(7), recovery is deemed stayed once the ADR Committee is constituted.

Counsel submitted that before the ADR petition was filed, the tax department approved recovery under Section 140. A recovery notice was issued and part of the disputed amount was recovered from PASSCO’s bank accounts on the same day.

The petitioner argued that this recovery was contrary to the Supreme Court’s judgment in Pakistan LNG. In that case the apex court held that same-day recovery under Section 140 is impermissible, and that a recovery notice must specify the date on which recovery will be made so the taxpayer has a reasonable opportunity to settle the liability. Counsel further contended that once proceedings under Section 134A are initiated, no recovery can be made from a government-owned entity.

Welcoming the order, Ch. Anwaar-ul-Haq Arif, Advocate, said the Court’s intervention reflects the spirit of the law. “Disputes between the state and its own entities are meant to be resolved through dialogue under the ADR mechanism, not through coercive recovery,” he said. “Section 134A was enacted precisely to avoid a situation of the state litigating against the state. This order protects public resources and facilitates the smooth functioning of a vital national institution responsible for food security.” The matter will be taken up again on October 15, 2026.

Copyright Business Recorder, 2026

In a letter sent to FBR Member Inland Revenue-Operations Zubair Bilal, KTBA president said the issues, raised earlier in letters of May 19 and August 10, remain unresolved. The association said taxpayers have been given too little time. The draft return was circulated through SRO 835(I)/2026 on May 7, but the final form was notified through SRO 1495(I)/2026 only on September 2.

The KTBA also cited recurring downtime and slow response on IRIS, including on weekly holidays, and objected to what it called voluminous data requirements.

These include full details of vehicle fleets, which can run into hundreds for larger companies, along with all immovable properties, bank accounts, shareholders and partners of associations of persons. Much of this data must be reconciled with third-party records and earlier declarations, it said.

Taxpayers under the minimum tax regime in Section 153 of the Income Tax Ordinance cannot make a correct declaration because the system computes additional normal tax wrongly, an issue KTBA raised separately on September 16.

The IRIS also caps adjustment of prior years’ refunds against current tax liability at Rs 200,000, although the Ordinance sets no such limit.

The refund application facility has not been activated for Tax Year 2026, and the portal no longer issues a downloadable acknowledgement after filing, which the KTBA called essential proof of timely submission.

The association further said Section 114(2A) requires companies to file in an electronically readable format, defined in section 2(19DA). The KTBA asked that manual entry of the same data be made optional once the file is uploaded.

It further said taxpayers whose shift to a special tax year has been approved by Commissioners cannot access the transitional return, and that the portal rejects negative figures for retained earnings, forcing inappropriate workarounds.

Making detailed shareholder particulars a condition for filing was impracticable for listed companies with large and changing shareholder bases, KTBA said, urging system integration or bulk upload.

The association asked the FBR to ensure stable operation of IRIS throughout the filing period, rationalize data requirements, fix the identified flaws on a priority basis and report the corrective steps taken.

Copyright Business Recorder, 2026

To facilitate taxpayers in making over-the-counter (OTC) payment of Government duties and taxes, it has been decided, on the request of Federal Board of Revenue (FBR), that all branches of commercial banks shall observe extended working hours until 10:00 P.M. on Wednesday, September 30, 2026.

Further, banks are advised to keep their concerned branches open on September 30, 2026 for as long as required to facilitate the Special Clearing for Government transactions conducted by NIFT.

The banks shall also ensure uninterrupted availability of their online payment channels i.e. internet banking, mobile applications, ATMs, and other digital platforms to facilitate the online payment of Government duties and taxes.

Copyright Business Recorder, 2026

“The Government of Pakistan and the FBR remain in continuous contact with traders, market representatives and trade bodies to ensure that the scheme is implemented in a smooth, transparent and trader-friendly manner. Feedback received from the business community is being duly considered, and efforts are underway to resolve genuine difficulties being faced by traders,” it said.

The FBR further advised traders who encounter any technical difficulty or problem while registering under the scheme to approach the FBR directly for assistance and guidance.

The board said it was committed to providing the necessary facilitation so that eligible traders could complete the registration process without unnecessary difficulty.

“The government strongly believes that the special tax scheme provides an opportunity for small shopkeepers to become part of the documented tax system through a simplified and facilitative framework.

“The scheme has been designed with the objective of encouraging voluntary compliance while providing greater certainty and ease of doing business for small traders,” it said.

According to a statement released on Monday, the apex trade body emphasised that this extension is not a concession but a practical necessity to ensure maximum tax compliance, broaden the tax base, and alleviate the immense pressure currently faced by the business community, small and medium enterprises (SMEs), and individual taxpayers.

Sheikh highlighted that as the September 30 deadline approaches, taxpayers and tax practitioners are facing severe systemic bottlenecks. The FBR’s IRIS portal has been experiencing frequent slowdowns, glitches, and downtimes due to heavy national traffic.

These technical disruptions are preventing thousands of willing taxpayers from submitting their returns and wealth statements accurately and on time, he added.

Sheikh explained that the business community of Pakistan remains committed to fulfilling its national duty and contributing to the national exchequer. However, penalising them for systemic inefficiencies and a highly congested and insufficient digital infrastructure is deeply unfair.

Income tax returns, wealth statements: PM urged to extend deadline

The FPCCI leadership outlined several critical reasons for the demanded extension, pointing first to the severe instability within the FBR’s digital infrastructure. Constant lagging and crashing of the IRIS system during peak hours have made it nearly impossible for tax lawyers, chartered accountants, and individual business owners to process filings efficiently.

FPCCI chief maintained that a one-month extension will provide a much-needed breathing space for taxpayers to reconcile their accounts, navigate the recent complexities introduced in the tax code, and file their returns without the fear of system crashes.

Sheikh highlighted that the recent complex amendments in tax laws and reporting requirements have created widespread confusion; meaning taxpayers require additional time to thoroughly understand these technicalities to avoid unintended errors in their wealth reconciliations.

He stressed that, alongside these technical hurdles, the ongoing macroeconomic challenges, including high inflation and surging operational costs, have severely stretched the administrative capacities of SMEs. Many businesses are struggling to finalize their financial audits and gather the necessary documentation within the rigid timeframe.

The FPCCI stressed that granting this extension directly supports the government’s own primary objective of increasing the number of active filers. Rushing the process will inevitably result in a lower volume of submissions, whereas an extended window will yield higher revenue collection and wider, more accurate compliance.

Sheikh appealed to the Prime Minister of Pakistan, the Minister for Finance and Revenue, and the Chairman of the FBR to take immediate cognisance of the ground realities. The federation warned that failure to extend the deadline could force many legitimate businesses into the non-filer category, resulting in unwarranted penalties and disruption of commercial activities that the fragile economic conditions cannot sustain.

Javed Iqbal Qazi, Advocate Supreme Court and Chairman of the Pakistan Tax Advisers Association, made this request in a letter addressed to the Prime Minister. A copy of the communication has also been forwarded to the Finance Minister, Chairman of the Federal Board of Revenue (FBR), and Member of the Inland Revenue Operations.

According to the letter, the deadline for filing income tax returns and wealth statements for Tax Year 2026 is currently September 30, 2026. The tax practitioners maintained that, given the prevailing circumstances, the target for the number of returns could not be achieved by the existing deadline.

They cited financial constraints and crisis in the country, slow and non-functioning of the IRIS system, load-shedding in different areas, and the heavy workload being faced by tax practitioners, advocates and chartered accountants as major reasons for seeking an extension.

The letter further stated that the volume of returns required to be filed through tax practitioners was substantial and required considerable time for preparation of returns, payment of tax through Computerised Payment Receipt (CPR) in banks and subsequent submission through the IRIS system.

The tax practitioners also referred to representations received from their members across the country, urging the government to facilitate taxpayers and tax professionals and address what they described as a genuine demand of the public at large.

One of the key issues highlighted in the letter was that the manual return facility for low-income taxpayers had not yet been uploaded on the IRIS system. The practitioners said this was creating additional difficulties for taxpayers seeking to fulfil their filing obligations.

Javed Iqbal Qazi also complained that the IRIS portal was functioning very slowly and required considerable time for uploading returns. According to them, the technical difficulties were further adding to the workload of taxpayers and practitioners ahead of the September 30 deadline.

The letter further pointed to recent disturbances in various major cities, saying that the work of tax practitioners and taxpayers had been adversely affected. It also cited unrest in the country and the financial position of taxpayers as factors affecting their ability to deposit their tax liabilities into the government exchequer.

The practitioners argued that an extension would facilitate taxpayers and tax professionals while also helping achieve the financial targets fixed by the FBR.

Copyright Business Recorder, 2026

Tax experts told Business Recorder that the FBR’s new return has not mentioned “Parachinar” in the list of cities where any return filer has already declared his property in last year’s return.

When any taxpayer chooses Kurram district for declaration of immovable property, the list of cities does not contain Parachinar due to unknown reasons. Taxpayers, who have declared immovable properties in Parachinar in their last income tax returns, are now unable to declare their properties. Resultantly, they are unable to timely file their income tax return.

Apparently, the error is very small, but the compliant taxpayers are unable to process their returns due to system error. The compliant taxpayers from KP have requested FBR Chairman to sympathetically look into the issue on top priority basis and direct the PRAL or relevant IT team to include Parachinar in the list of cities of Kurram district for declaration of immovable property in their income tax returns.

Copyright Business Recorder, 2026

In its letter sent to the Member Operations FBR on Friday, the KTBA said the portal calculates a “Difference of Minimum Tax” without disclosing the underlying formula, assumptions, or the provision of the Income Tax Ordinance, 2001, leaving taxpayers unable to verify the computation themselves.

The Bar said that it is against the self-assessment scheme built into the Ordinance, under which taxpayers, not the portal, are meant to determine their own tax liability based on their specific business streams, receipts, and allowable deductions.

The KTBA said that IRIS in some cases applied normal tax rates without properly accounting for tax already collected or deducted at source under Section 153, effectively counting the same income twice and generating additional liability despite prior withholding.

It further said that any minimum-tax comparison should be made against the normal tax the taxpayer has already computed and declared, rather than through what it described as a mechanical allocation of receipts or an averaged tax rate applied automatically by the system.

Calling for the restriction to be “removed forthwith,” the KTBA said IRIS should function as a tool to implement the law rather than one that predetermines taxpayer liability, and urged the Board to allow taxpayers to disclose relevant facts and complete their lawful computations without system-imposed constraints.

Copyright Business Recorder, 2026

A PRA spokesperson said the new cell would continuously track tax payments and business records across the services sector with a particular focus on local and international food chains. These businesses will undergo detailed digital scrutiny, including a comparative review of their digital and cash payment records, aimed at detecting underreported sales, falsified records and understated tax liabilities.

The authority will also examine gaps between the actual scale of business activity and the figures declared for tax purposes, cross-referencing financial data from multiple sources to flag potential evasion. Tax returns, payments and declared business activity will be checked against one another for consistency, and both digital and cash transactions will fall under the new monitoring framework.

The spokesperson said the PRA is committed to deploying digital technology on a wide scale to prevent tax evasion and fraudulent practices, adding that the move is part of a broader effort to tighten enforcement and ensure accurate tax collection from the services sector.

Copyright Business Recorder, 2026

This was revealed by senior FBR officials while briefing the Senate Standing Committee on Finance and Revenue, which met with Saleem Mandviwalla in the chair here on Thursday. An FBR official added that refunds of Rs500 billion were paid during the last fiscal year.

Minister of State for Finance Bilal Azhar Kiyani, during informal talks with the media before the start of the committee meeting, hinted that an IMF staff mission may arrive on September 23 or 24.

The committee met to consider matters relating to tax refunds, sales tax on unsold jewellery returned under the Self-Consignment Scheme, honorarium for medical staff deployed during the Budget Session, and other financial and banking issues.

The officials said the FBR had already disbursed around Rs197 billion in refunds during the first two months of the current fiscal year, up Rs40 billion from Rs157 billion paid during the corresponding period last year.

The Committee was informed that the matter regarding payment of honorarium equivalent to five months’ basic pay to medical staff performing duties during the Budget Session in Parliament House has been resolved. Kayani stated that the Ministry of Finance and Revenue has issued the requisite instructions in this regard.

The Committee also discussed the withholding of legitimate income tax refunds by the Federal Board of Revenue (FBR). Representatives of the affected chemical company stated that its tax refunds had remained pending for the last six years, with more than Rs270 million. The Committee observed that delayed refunds adversely affect the cash flow of businesses and must be amicably addressed. Mandviwalla highlighted that under the new system, refunds were expected to be processed within 72 hours. FBR officials assured the Committee that the matter would be resolved within one month. The Committee also directed the FBR to release the refunds and report to the Committee within 30 days.

Senator Talha Mahmood stressed the need to make the FBR more taxpayer-friendly and sought details of tax refunds for the last five years. FBR officials informed the Committee that a new system had been introduced to reduce discretion, and now refunds are being issued systemically in sequence.

The officials further informed the Committee that refunds amounting to approximately Rs197 billion had been issued during the first two months of the current fiscal year, compared to Rs157 billion during the corresponding period of the previous fiscal year, representing an increase of Rs40 billion.

Under the IMF-related condition, the FBR cannot retain refunds exceeding Rs390 billion, and therefore refunds cannot be withheld for an extended period. Senator Abdul Qadir observed that if a taxpayer receives a refund after two years, it indicates that the refund was genuinely due. He called for action against officials responsible for unnecessary delays in the release of refunds.

The Committee received a further briefing from the State Bank of Pakistan on the implementation of Foreign Exchange Circular No. 16 of June 24, 1999, regarding payment of interest/profit on Foreign Currency Accounts and measures aimed at protecting foreign investment and depositor confidence.

Additionally, the Committee was also briefed on the request of the Jewellers & Gems Traders Association of Pakistan for removal of the sales tax on unsold jewellery returned under the Self-Consignment Export Scheme.

The FBR Officials informed that under the Entrustment Scheme, import of unsold jewellery is exempted from sales tax after completion of the required customs documentation.

The representatives of the Jewellers & Gems Traders Association of Pakistan pointed out that while exports are exempted from taxes, an 18 percent sales tax is imposed when the unsold gold and jewellery are returned under the self-consignment scheme, creating an additional burden on exporters. They also highlighted issues relating to the treatment of gold and gemstones under the relevant SRO 760(I)/2013.

In view of the SRO, the Chairman of the Committee stated that the Ministry of Commerce would be invited to the next meeting to discuss the matter and resolve it amicably.

Copyright Business Recorder, 2026

The application is designed to provide citizens, taxpayers, and business owners with seamless digital access to essential sales tax services and transparent grievance redressal mechanisms.

The KPRA Sahulat app serves as a comprehensive citizen services platform.

Its key features include real-time invoice verification through QR code scanning, a direct reporting system for unverified or suspicious receipts, an interactive sales tax calculator, offline access to Schedule-II tax rates, and a live tax calendar to track filing deadlines.

Additionally, citizens can verify registered businesses via NTN; track submitted complaints, and access official notifications and taxpayer guides.

Highlighting the significance of the digital milestone, Director General KPRA, Miss Irum Naz, stated that the initiative directly aligns with the provincial government’s vision of governance reform and public service delivery.

“KPRA Sahulat represents a major stride forward in empowering the people of Khyber Pakhtunkhwa.

In alignment with the forward-looking vision of Chief Minister Muhammad Sohail Afridi and Chief Secretary Shahab Ali Shah, KPRA remains steadfast in providing accessible, transparent, and seamless public services. This digital platform equips citizens with the tools they need to engage effortlessly, exercise their rights, and voice their concerns with complete ease and confidence,“ said DG KPRA.

DG KPRA expressed her sincere gratitude to the Advisor to the Chief Minister of Finance, Muzzammil Aslam, and Secretary Finance, Captain Kamran Ahmad Afridi (retd), whose continuous support and guidance have enabled KPRA to make remarkable strides and emerge as an exemplary public sector institution.

Miss Irum Naz lauded the dedicated efforts of the KPRA ICT team for conceptualizing and developing the application in-house to serve the citizens of Khyber Pakhtunkhwa effectively.

Addressing iOS users, DG KPRA announced that the development team is actively finalizing the iOS version of the application, which will soon be available on the Apple App Store to ensure complete coverage across all mobile platforms.

The KPRA Sahulat app is currently available for download free of charge on the Google Play Store for all Android users.

Copyright Business Recorder, 2026

An information desk was set up at Gul Centre where officers engaged directly with shopkeepers, explained the scheme’s simple registration process, nominal fixed tax rates, and the ease of enrolment through FBR’s online portal and app. Traders were assured that the scheme is facilitative, not punitive, and were encouraged to become part of the formal tax net.

The team also visited Dawlance Electronics showroom, where officers held a detailed, cordial sitting with the proprietor and staff, addressing their queries and reaffirming FBR’s facilitative approach. The visit was well received, with shopkeepers appreciating the department’s outreach and assuring cooperation.

The Chief Commissioner Inland Revenue, RTO Hyderabad, said such awareness drives will continue across the city’s commercial hubs, and reiterated that the initiative reflects the department’s policy of taking taxpayers into confidence through dialogue and facilitation rather than enforcement.

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Speaking at the Lahore Chamber of Commerce and Industry (LCCI), she said the scheme introduced through SRO 1166(I)/2026 was aimed at bringing more small businesses into the documented economy by making taxation easier, transparent and less burdensome.

Fiza Batool said under the scheme, eligible businesses would be facilitated through exemptions from routine audit, Point of Sale (POS) integration and digital invoicing requirements, while a green plate would be provided to registered shopkeepers to facilitate inspection. She said the scheme was voluntary and traders could either continue filing returns under the normal tax regime or opt for the new simplified regime.

The chief commissioner said chambers played an important role as a bridge between the tax department and the business community. She assured the participants of full cooperation from the FBR and said the doors of the department’s offices were open to businesspeople for resolution of their genuine concerns.

She informed the LCCI members the FBR had established a helpline and WhatsApp facility for complaints and would also initiate an open-court mechanism to provide another platform for taxpayers to raise their issues.

Explaining the salient features, she said the scheme followed the principle of “One Page, One Return, One Percent” and required minimum information from eligible traders. The tax would be calculated at 1% of turnover, subject to a minimum liability of Rs 25,000.

She encouraged existing taxpayers and business organizations to create awareness among traders who were not currently filing tax returns and urged them to take advantage of the opportunity to declare their income and become part of the tax system through the simplified regime.

LCCI President Faheem Ur Rehman Saigol said that the introduction of a simplified fixed tax regime for small traders was a longstanding demand of the Lahore Chamber. LCCI had always advocated an easy, transparent and workable taxation system for small traders and shopkeepers so that they could fulfill their tax obligations without facing complicated procedures, he added.

He said the objective should be to make taxation easier so that businesses voluntarily enter the tax net. This would not only broaden the tax base but also help create a level playing field for existing taxpayers who were already fulfilling their obligations.

He stressed that the process of tax reform should continue and called for a broader effort to make the tax system simpler, more transparent and business-friendly.

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The matter pertains to anappeal filed by Sultan Ahmad, Multan-Versus the Commissioner Inland Revenue, RTO, Multan.

During the hearing, the Tribunal Bench comprising Naveed Zafar Khan, Member, and Khurram Shahbaz Butt, Member, was informed by the respondent side.

Muhammad Imran Ghaziadvocate appeared for the appellant, while Muhammad Nawaz, CIR (Multan-Zone), and Muhammad Irfan Khan Tareen, DR, represented the Department.

The Commissioner of Inland Revenue assured the Bench that the reconciliation requisitioned by the Tribunal shall be submitted within 10 days.

Considering the fact that the costs had already been deposited by the CIR, the Bench entertained the request made by the Commissioner.

The office has been directed to fix the main appeal for September 17, 2026.

Meanwhile, the CIR has been directed to furnish the reconciliation report on or before September 14.

The office is further directed to provide a certified copy of this order sheet to the DR for compliance.

The case has been adjourned until September 17 for further proceedings.

This compliance by the head of the department is being termed as a “landmark move” towards upholding the dignity of the Tribunal and ensuring timely disposal of tax matters.

Copyright Business Recorder, 2026