ISLAMABAD: The Federal Board of Revenue (FBR) extended on Tuesday the deadline for filing income tax returns for 2025 tax year, by a fortnight.
In a statement, the FBR said that the deadline had been extended in view of the request from various business and tax communities. Now, income tax returns for tax year 2025 can be filed till October 15.“This decision has been made under Section 214A of the Income Tax Ordinance, 2001.
The extension in the deadline has been granted in response to requests made by various trade bodies, tax bar associations, and the general public,” read the notification. Earlier, the Federal Board of Revenue (FBR) reported a significant revenue shortfall of nearly Rs 200 billion for the first quarter (July-September) of the current fiscal year. The FBR’s net collection stood at Rs2.884trillion against an envisaged target of Rs3.083trillion. This shortfall was partly due to a delay in the Supreme Court’s verdict on the Super Tax, which the FBR had expected to generate Rs0.16 to Rs0.2 trillion in September 2025; the ruling is now expected in the coming months. Against the specific target agreed with the International Monetary Fund (IMF), the shortfall was Rs 160 billion, with net collection at Rs2.884trillion versus the agreed target of Rs3.023 trillion. An IMF review mission is currently in Pakistan for the second review under the $7 billion Extended Fund Facility (EFF). It remains to be seen how the IMF will respond to this shortfall. To meet the agreed primary balance, the government may have to take additional revenue measures or slash expenditures, potentially by cutting the Public Sector Development Programme (PSDP). Breaking down the Rs 2.884 trillion net collection, the FBR raised Rs 1,395.4 billion from Income Tax, Rs1,130.7 billion from Sales Tax, Rs190.5 billion from Federal Excise Duty, and Rs324.8 billion from Customs Duty. This net figure follows the repayment of refunds worth Rs157 billion from a gross collection of Rs3,041.4 billion. A top official source confirmed that the final net shortfall is expected to be around Rs190-200 billion. The FBR had received nearly 4million income tax returns by September 30, 2025, with a decision on extending the deadline pending. Looking ahead, there is apprehension that the FBR could face an annual shortfall of Rs800-1,000 billion against its ambitious yearly target of Rs14.13 trillion, which requires a 20pc increase over the previous year. Finance Minister Muhammad Aurangzeb had previously warned that without approved enforcement measures, the government might need additional revenue steps worth Rs 400-500 billion.