PTBA seeks extension for sales tax filing

KARACHI: The Pakistan Tax Bar Association (PTBA) has requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns for March and April 2025, citing widespread technical issues with newly introduced annexures.

In a letter addressed to FBR Chairperson Rashid Mahmood Langrial, the PTBA expressed support for the government’s documentation drive, which aims to enhance transparency through detailed disclosures mandated by various annexures and notifications. However, it noted that, despite these well-intentioned reforms, many registered taxpayers are unable to file accurate returns within the stipulated timeframe.

“We have received numerous representations from our member bars nationwide, indicating that the statutory deadlines for March and April 2025 have already passed. Regrettably, only a small number of returns have been submitted so far, while a significant number of sales tax-registered persons are still unable to comply due to unresolved discrepancies in the newly inserted annexures,” the letter stated. It warned that many taxpayers now face the risk of being declared inactive through no fault of their own.

In light of these concerns, the PTBA has urged the FBR to extend the filing deadline either until June 30 or until the annexure discrepancies are resolved. It also recommended that taxpayers who submitted incorrect returns due to confusion surrounding the new disclosure formats should be allowed to revise them automatically via the Iris portal.

“We are confident that this extension will allow sufficient time to rectify the annexure-related issues and enable taxpayers to fulfil their obligations under the Sales Tax Act, 1990, in a fully compliant manner,” the letter added.

The association expressed hope that the request would be considered favourably in the broader interest of the government and the FBR, helping to ensure the accurate collection of tax data that truly reflects commercial activity and tax liability.