Pakistan Tax Bar Association urges FBR to extend ST return filing deadline

KARACHI: The Pakistan Tax Bar Association (PTBA) has formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns for March and April 2025, citing widespread technical difficulties and system discrepancies affecting taxpayers nationwide.

In a letter addressed to FBR Chairman Rashid Mahmood Langrial, the tax bar highlighted that despite the government’s documentation initiatives aimed at enhancing transparency through structured disclosure via various annexures and notifications, many registered taxpayers are struggling to file accurate returns within the statutory deadline.

According to the PTBA, member bars across the country have reported that the statutory deadline for March and April 2025 sales tax returns has already passed, yet only a minimal number of returns have been successfully filed, attributing this low filing rate to unresolved discrepancies in newly inserted annexures within the filing system.

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“Unfortunately, only a meager number of returns have been filed to date and a huge number of sales tax registered persons are still unable to file their sales tax returns for the respective months due to the non-resolution of discrepancies in the newly inserted Annexures,” the letter said.

The Bar expressed concern that many taxpayers risk being declared inactive through no fault of their own due to their inability to complete the filing process. This could potentially impact their business operations and compliance status despite their willingness to fulfill tax obligations.

The Bar has requested two key measures from the FBR. First, an extension of the filing deadline for March and April 2025 sales tax returns until June 30, 2025, or until the resolution of system discrepancies in the annexures.

Second, permission for taxpayers who have already filed returns with inadvertent errors due to misunderstanding of annexure disclosure requirements to make automatic revisions through the IRIS portal.

“We are confident that this extension will provide sufficient time to address the current discrepancies in the annexures, enabling taxpayers to fulfill their legal obligations under the Sales Tax Act, 1990, in a proper and compliant manner,” the letter said.

Copyright Business Recorder, 2025