FPCCI President highlights difficulties in filing income tax returns

KARACHI: Atif Ikram Sheikh, President FPCCI, has highlighted the technical difficulties and delays in filing income tax returns; and, has recommended an extension of 30 days as a special case scenario to enable the system to handle the enormous volume and flux.

There are limitations and incapacities in the online system of the federal board of revenue (FBR) and as a result, tax filing system remains cumbersome for the common man. The system needs to be fixed for delays and downtimes, he added.

He reminded that FPCCI, being the apex body, has been putting forward simplification of taxation system in general; and, income tax return form in particular to facilitate the process. It is in the national interest and interest of the economy to assist as many citizens possible to file the returns. The more Pakistan’s economy is inclusive, formal and documented, the more it will be acceptable for external financing from international financial institutions and lenders, he added.

FPCCI Chief maintained that FBR needs to expedite digitalization for a multitude of reasons: minimizing human involvement; saving time & resources of the return filers; reduction in documentation errors; improving systemic & procedural efficiency and curtailing complaints, anomalies and discrepancies.

He stated that the FBR and Pakistan Revenue Automation Limited (PRAL) missed important deadlines vis-a-vis issuance of return forms – as given in rule 34A(2)(e), (3), and (4); where, it is mandated, that the draft electronic and manual return forms were to be released and made available by January 1, 2024.

However, the aforementioned forms were issued on June 21, 2024 – procrastination by more than five months.

Copyright Business Recorder, 2024