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Taxpayers in Pakistan are going through a difficult time as problems in the FBR’s IRIS system and ongoing protests have made it hard for many to file their income tax returns on time.
The Lahore Tax Bar Association has officially asked Prime Minister Shehbaz Sharif to extend the deadline for filing tax returns. The association said that technical faults in the IRIS system are stopping people from submitting their forms properly.
In a letter to the Prime Minister, the association mentioned several system errors, such as wrong calculations of tax credits and the incorrect application of tax under Section 4AB on income from Associations of Persons (AOPs), which is actually exempt by law. It also pointed out mistakes in the allocation of income under the Minimum Tax Regime and miscalculations of tax on profit from debt under Section 151.
The association said these system issues have caused frustration among taxpayers and tax professionals, and many have not been able to file their returns in time. It also noted that the return form was released 219 days late, leaving very little time for people to complete the process.
The Lahore Tax Bar has requested that the government extend the tax filing deadline to October 31, 2025, to give taxpayers more time and relief.
Last month, the tax authorities already extended the filing date for the 2025 tax year to October 15, just hours before the original September 30 deadline was due to expire.
This move showed that the Federal Board of Revenue (FBR) gave in to pressure from trade organizations, tax bar associations, and the public, despite earlier insisting that the deadline would not change.
According to an official statement, the extension was granted under Section 214A of the Income Tax Ordinance, 2001. The FBR said the decision was made in response to repeated requests from various stakeholders, including trade bodies and tax associations.
